Call Option Activity Highlights
On 1 February 2026, Infosys witnessed an impressive 18,738 call option contracts traded at the 1700 strike price, generating a turnover of ₹1280.18 lakhs. This level of activity is substantial given the underlying stock price of ₹1667.20, indicating that market participants are positioning for a potential upside beyond the current levels. The open interest at this strike stands at 5,108 contracts, underscoring sustained interest and commitment from traders.
The 1700 strike price is particularly noteworthy as it sits just above the current market price, suggesting that investors anticipate a breakout above this level before the February expiry. The concentration of call options at this strike price often signals a bullish sentiment, with traders expecting the stock to surpass this threshold within the next few weeks.
Price and Trend Analysis
Infosys's stock price performance on the day was inline with its sector peers, gaining 0.95% and touching an intraday high of ₹1677.30, a 2.21% increase from the previous close. The stock also experienced an intraday low of ₹1604, down 2.25%, reflecting some volatility. Notably, the weighted average price of traded shares skewed closer to the day's low, indicating that while the stock rallied, significant volume was executed at lower price points.
From a technical perspective, Infosys is trading above its 20-day, 50-day, 100-day, and 200-day moving averages, signalling a generally positive medium- to long-term trend. However, it remains below its 5-day moving average, suggesting some short-term consolidation or profit-taking. The stock has reversed its downward trajectory after three consecutive days of decline, which may have prompted renewed buying interest.
Investor participation has also risen sharply, with delivery volumes on 30 January reaching 64.42 lakhs, a 41.2% increase compared to the five-day average. This heightened activity reflects growing conviction among long-term investors, complementing the speculative call option trades.
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Market Capitalisation and Sector Context
Infosys Ltd is a large-cap heavyweight in the Computers - Software & Consulting sector, boasting a market capitalisation of ₹6,53,005 crores. The company’s mojo score currently stands at 70.0, reflecting a Buy rating, an upgrade from Hold as of 22 December 2025. This upgrade is supported by improved fundamentals and positive trend assessments, which have bolstered investor confidence.
On the day, Infosys’s 1-day return of 1.45% closely tracked the sector’s 1.50% gain, while the broader Sensex declined by 1.03%. This relative outperformance highlights the stock’s resilience amid broader market weakness and reinforces the bullish sentiment evident in the options market.
Expiry Patterns and Investor Positioning
The February 24 expiry is attracting significant attention, with the 1700 strike call options dominating volumes. This expiry is critical as it falls just before the company’s expected quarterly results season, which often acts as a catalyst for price movements. Traders appear to be positioning for a positive earnings surprise or favourable guidance, which could propel the stock above the 1700 level.
Open interest data suggests that many investors are holding onto their call positions rather than closing them, indicating confidence in a sustained rally. The combination of rising delivery volumes and call option activity points to a blend of long-term accumulation and short-term speculative interest.
Risks and Considerations
Despite the bullish indicators, investors should remain cautious of the stock’s recent volatility and the fact that the weighted average traded price was closer to the day’s low. This could imply some underlying selling pressure or profit-booking at higher levels. Additionally, the stock’s position below the 5-day moving average suggests that short-term momentum may be fragile.
Moreover, macroeconomic factors and sector-specific challenges could influence the stock’s trajectory in the near term. Investors should monitor upcoming earnings announcements and broader market trends to validate the current bullish positioning.
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Outlook and Investor Takeaways
Infosys Ltd’s strong call option activity, combined with its upgraded mojo grade and solid market capitalisation, positions it as a compelling stock for investors seeking exposure to the software and consulting sector. The bullish sentiment reflected in the derivatives market suggests expectations of upward price movement in the near term, particularly around the 1700 strike price ahead of the February expiry.
Investors should weigh the positive technical signals and rising investor participation against the recent price volatility and short-term moving average resistance. A close watch on earnings results and sector dynamics will be essential to confirm the sustainability of the current momentum.
Overall, Infosys remains a key stock to monitor for both long-term investors and traders capitalising on options market trends, with the potential for meaningful gains if bullish expectations materialise.
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