Call Option Activity Highlights
On 9 September 2026, Infosys recorded significant volumes in call options, particularly concentrated around strike prices of ₹1,100, ₹1,120, and ₹1,140, all expiring on 29 September 2026. The most actively traded call option was at the ₹1,100 strike, with 10,344 contracts changing hands, generating a turnover of ₹465.48 lakhs and an open interest of 10,303 contracts. This was closely followed by the ₹1,120 strike, which saw 7,130 contracts traded, turnover of ₹213.33 lakhs, and an open interest of 8,170. The ₹1,140 strike also attracted substantial activity with 6,542 contracts traded, turnover of ₹130.84 lakhs, and an open interest of 11,065 contracts.
These figures indicate a strong bullish positioning among options traders, who appear to be anticipating a rebound or at least a stabilisation in Infosys’s share price above these key strike levels by the end of the month. The underlying stock price at the time stood at ₹1,051.10, suggesting that traders are betting on a near-term upside of approximately 5% to 8% from current levels.
Price Performance and Technical Context
Contrasting with the bullish sentiment in the options market, Infosys’s spot price has been under pressure. The stock has declined for six consecutive sessions, losing 9.4% over this period. On 9 September, it opened with a gap down of 3.19% and touched an intraday low of ₹1,047.10, marking a 3.23% drop on the day. The trading range was notably narrow at just ₹0.90, reflecting subdued volatility in the cash market despite heightened derivatives activity.
Technically, Infosys is trading below all major moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a bearish trend across multiple timeframes. This technical weakness is compounded by the broader IT software sector’s decline of 2.47% on the same day, indicating sector-wide headwinds. The Sensex, by comparison, was relatively resilient, falling only 0.46%, underscoring the sector-specific challenges Infosys faces.
Investor Participation and Liquidity
Investor participation has also waned, with delivery volumes on 8 September falling by 19.83% against the five-day average, registering 37.36 lakh shares. Despite this, liquidity remains adequate, with the stock’s traded value supporting a trade size of approximately ₹16.54 crore based on 2% of the five-day average traded value. This liquidity profile ensures that both spot and derivatives markets remain accessible for institutional and retail participants alike.
Fundamental and Rating Overview
Infosys, classified as a large-cap company with a market capitalisation of ₹4,39,486 crore, currently holds a Mojo Score of 60.0 and a Mojo Grade of Hold, upgraded from Sell on 13 April 2026. This rating adjustment reflects a cautious optimism amid mixed signals from financial metrics and market trends. The stock also offers a relatively high dividend yield of 4.48%, which may appeal to income-focused investors despite the recent price weakness.
Interpreting the Divergence Between Spot and Options Markets
The surge in call option volumes at strike prices above the current market price suggests that a segment of investors is positioning for a potential recovery or a positive catalyst in the near term. This could be driven by expectations of strong quarterly results, favourable contract wins, or broader sectoral tailwinds. However, the persistent downtrend in the spot price and subdued investor participation indicate that caution remains prevalent among the broader investor base.
Open interest data further supports this view, with the highest open interest recorded at the ₹1,140 strike, signalling that many traders are holding onto bullish call positions rather than closing them out. This accumulation of open interest at out-of-the-money strikes is often interpreted as a sign of confidence in an upward price move, albeit with some risk tolerance given the current market conditions.
Expiry Patterns and Market Implications
With the 29 September expiry approaching, the concentration of call option activity at these strikes will likely influence price dynamics in the coming weeks. Market makers and institutional traders may engage in hedging strategies that could create support levels near these strike prices. Additionally, the expiry could trigger volatility as positions are squared off or rolled forward, potentially offering trading opportunities for nimble investors.
Given the stock’s recent underperformance relative to the IT sector and the broader market, the options market’s bullish tilt may reflect a contrarian stance or a strategic hedge against further downside. Investors should monitor upcoming corporate announcements and sector developments closely to gauge whether this optimism is justified.
Conclusion
Infosys Ltd’s current market scenario presents a nuanced picture. While the spot price continues to face downward pressure amid weak sectoral trends and technical challenges, the derivatives market reveals a more optimistic outlook with substantial call option activity at strikes above the current price. This divergence underscores the complexity of investor sentiment and the importance of analysing both cash and derivatives markets to form a comprehensive view.
For investors, the key takeaway is to balance the bullish signals from the options market with the prevailing bearish momentum in the stock price. Monitoring open interest trends, expiry dynamics, and fundamental developments will be crucial in navigating Infosys’s near-term trajectory.
