Robust Call Option Volume and Open Interest
On 10 July 2026, Infosys recorded the most active call option contracts at the 1,100 strike price, with a substantial 14,017 contracts traded. This surge generated a turnover of approximately ₹1167.9 lakhs, reflecting heightened investor interest in leveraged bullish positions. The open interest at this strike stands at 25,538 contracts, underscoring a strong build-up of outstanding positions that could influence price dynamics as expiry nears.
The underlying stock price closed at ₹1,068.90, indicating that the 1,100 strike calls are slightly out-of-the-money but within striking distance, which often attracts speculative and hedging activity ahead of expiry. The concentration of activity at this strike price suggests market participants are positioning for a potential upward move in the near term.
Price Action and Technical Context
Infosys opened the trading session with a gap up of 2.3%, reaching an intraday high of ₹1,091.30, a 3.85% increase from the previous close. This rebound follows two consecutive days of declines, signalling a possible trend reversal. However, the stock underperformed its sector by 0.72% on the day, indicating some relative weakness despite the positive price action.
From a technical standpoint, the stock is trading above its 5-day moving average but remains below its 20-day, 50-day, 100-day, and 200-day moving averages. This mixed technical picture suggests that while short-term momentum is improving, longer-term trends remain subdued, which may temper overly optimistic expectations.
Investor Participation and Liquidity Considerations
Delivery volumes on 9 July fell sharply by 51.86% compared to the 5-day average, with 35.81 lakh shares delivered. This decline in investor participation could indicate cautiousness or profit-taking ahead of the expiry. Nevertheless, liquidity remains adequate, with the stock’s traded value supporting sizeable trade sizes up to ₹26.67 crore, ensuring that option and stock trades can be executed without significant market impact.
Dividend Yield and Market Capitalisation
Infosys continues to offer an attractive dividend yield of 4.62% at current prices, which may appeal to income-focused investors amid the broader market volatility. The company’s large-cap status, with a market capitalisation of ₹4,26,066 crore, further reinforces its position as a blue-chip stock within the Computers - Software & Consulting sector.
Mojo Score and Analyst Sentiment
The stock’s Mojo Score currently stands at 57.0, reflecting a Hold rating, an upgrade from a Sell rating issued on 13 April 2026. This improvement suggests that analysts have recognised stabilising fundamentals or valuation support, although the stock has yet to demonstrate a decisive breakout to warrant a Buy rating. Investors should weigh this cautious optimism against the technical and volume signals observed in the options market.
Implications of Elevated Call Option Activity
The pronounced call option activity at the 1,100 strike price ahead of the 28 July expiry is indicative of bullish positioning by traders anticipating a price rally. Such activity often precedes significant price moves, as option writers hedge their exposure and buyers seek leveraged upside. However, the proximity of the strike to the current price means that a sustained rally above ₹1,100 will be necessary for these options to realise intrinsic value at expiry.
Market participants should monitor open interest changes and volume trends closely in the coming days, as shifts could signal either a continuation of bullish momentum or profit-taking. Additionally, the broader sector and Sensex performance, which returned 1.76% and 0.98% respectively on the same day, provide a supportive backdrop for Infosys’s potential upside.
Conclusion: Balanced Outlook Amid Mixed Signals
While the surge in call option volumes and turnover points to increased bullish sentiment, the stock’s technical positioning and reduced delivery volumes suggest a degree of caution remains warranted. The Hold rating and moderate Mojo Score reinforce this balanced outlook. Investors should consider the interplay of these factors and remain vigilant for confirmation of trend direction as the July expiry approaches.
In summary, Infosys Ltd’s elevated call option activity at the 1,100 strike price highlights a market expectation of upward price movement, but the stock’s mixed technical signals and recent underperformance relative to its sector counsel a measured approach. Close monitoring of price action and option market dynamics will be essential for investors seeking to capitalise on this evolving scenario.
