Infosys Sees Robust Call Option Activity Amid Mixed Market Performance

Call Option Trading Highlights

Infosys, a major player in the Computers - Software & Consulting industry, recorded substantial volumes in call options for the expiry dated 30 December 2025. The strike prices attracting the most attention were ₹1660, ₹1680, and ₹1700, with the highest number of contracts traded at the ₹1700 strike.

Specifically, the ₹1700 call option saw 9,981 contracts traded, generating a turnover of approximately ₹123.37 lakhs and an open interest of 12,970 contracts. The ₹1680 strike followed with 7,169 contracts traded, turnover of ₹174.64 lakhs, and open interest standing at 7,961. Meanwhile, the ₹1660 strike recorded 6,051 contracts traded, turnover of ₹304.73 lakhs, and open interest of 5,223 contracts.

The underlying stock value at the time was ₹1657.40, indicating that the strike prices chosen by traders are positioned slightly above the current market price, suggesting a degree of bullish positioning among market participants.

Stock Price and Market Context

On the trading day, Infosys’s stock price showed a decline of 1.83%, underperforming its sector which fell by 1.26%, and the broader Sensex index which moved down by 0.19%. This followed a four-day run of consecutive gains, marking a potential trend reversal in the short term.

Despite the recent price movement, Infosys continues to trade above its key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning often indicates underlying strength in the stock’s medium to long-term trend.

Investor participation has shown a marked rise, with delivery volume on 22 December reaching 1.8 crore shares, a 327.52% increase compared to the five-day average delivery volume. This heightened activity suggests growing interest and engagement from market participants.

Liquidity remains robust, with the stock’s traded value supporting trade sizes up to ₹36.67 crore based on 2% of the five-day average traded value, facilitating efficient execution for larger orders.

Investor Sentiment and Expiry Patterns

The concentration of call option activity at strike prices above the current market value suggests that investors are positioning for a potential upward movement in Infosys shares by the end of December. The open interest figures, particularly at the ₹1700 strike, indicate that a significant number of traders are holding positions that would benefit from a rally beyond this level.

Such positioning is common ahead of expiry dates as traders seek to capitalise on anticipated price movements or hedge existing exposures. The expiry on 30 December 2025 is likely to be a focal point for volatility and price discovery in Infosys shares.

Sector and Market Capitalisation Context

Infosys operates within the Computers - Software & Consulting sector, a segment that has shown varied performance in recent sessions. The stock’s market capitalisation stands at ₹7,02,007 crore, categorising it firmly as a large-cap entity with significant influence on sectoral indices.

While the stock’s one-day return was negative, it outperformed the broader Sensex index’s marginal decline, reflecting sector-specific dynamics and investor preferences. The sector’s 1.26% decline on the day places Infosys’s performance in a relative context, highlighting the nuanced market environment.

Technical Indicators and Market Dynamics

Infosys’s position above all major moving averages suggests that despite short-term fluctuations, the stock maintains a foundation of technical support. This can be a factor in the sustained interest in call options, as traders anticipate potential rebounds or continued upward momentum.

The sharp rise in delivery volume indicates that investors are not merely trading on a speculative basis but are also taking physical delivery of shares, which can be interpreted as a sign of confidence in the stock’s medium-term prospects.

Liquidity metrics further support the stock’s suitability for active trading strategies, allowing market participants to enter and exit positions with relative ease, an important consideration for options traders managing risk and exposure.

Outlook Ahead of Expiry

As the 30 December 2025 expiry approaches, market participants will closely monitor Infosys’s price action and option open interest to gauge the balance of bullish and bearish sentiment. The concentration of call options at strikes above the current price level points to a cautiously optimistic outlook among traders.

Investors and traders should consider the broader market environment, sector trends, and technical signals when assessing potential movements in Infosys shares. The interplay between spot market performance and derivatives activity offers valuable insights into market expectations and risk appetite.

Summary

Infosys Ltd’s recent derivatives activity highlights a significant focus on call options with strike prices ranging from ₹1660 to ₹1700, reflecting a degree of bullish positioning despite a short-term price decline. The stock’s technical standing above key moving averages, coupled with rising delivery volumes and strong liquidity, underscores its continued relevance in the Computers - Software & Consulting sector.

Market participants will be watching the upcoming expiry closely to assess whether the current option positioning translates into price movements, making Infosys a stock of interest for both equity and derivatives traders in the near term.

Only Rs. 14,999 - Get MojoOne + Stock of the Week for 1 Year PLUS 18 Months FREE! Claim Your Free Year →