Infosys Sees Robust Call Option Activity Amid Bullish Market Sentiment

Strong Call Option Volumes Signal Investor Optimism

Infosys, trading at an underlying value of ₹1,610.8, has witnessed substantial call option volumes concentrated at strike prices of ₹1,600 and ₹1,620 for the expiry on 30 December 2025. The ₹1,600 strike call options recorded 5,304 contracts traded, generating a turnover of approximately ₹774.81 lakhs, while the ₹1,620 strike saw 4,407 contracts traded with a turnover of ₹458.68 lakhs. Open interest figures further underscore this activity, with 18,250 contracts outstanding at the ₹1,600 strike and 5,341 at ₹1,620, indicating sustained investor positioning in these strikes.

The concentration of call option activity near the current stock price suggests that market participants are positioning for a potential upward movement in Infosys shares over the coming weeks. This is consistent with the stock’s recent performance and technical indicators.

Price Performance and Technical Indicators

Infosys has outperformed its sector by 0.42% on the day, registering a 0.79% gain compared to the sector’s 0.43% and the Sensex’s marginal 0.04% rise. The stock has recorded gains over the last three consecutive sessions, delivering a cumulative return of 3.08% during this period. Notably, the share price has traded within a narrow range of ₹12.7, reflecting a period of consolidation ahead of potential directional movement.

From a technical standpoint, Infosys is trading above its key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This alignment of moving averages typically signals a positive trend and may be contributing to the bullish sentiment observed in the options market.

Rising Investor Participation and Liquidity

Investor participation has shown a marked increase, with delivery volumes reaching 86.24 lakh shares on 4 December, representing an 88.88% rise compared to the five-day average delivery volume. This surge in delivery volume indicates stronger conviction among investors holding shares for the longer term rather than short-term trading.

Liquidity remains robust, with the stock’s traded value supporting trade sizes of up to ₹27.93 crore based on 2% of the five-day average traded value. Such liquidity levels facilitate smoother execution of large trades and may encourage further institutional interest.

Market Capitalisation and Sector Context

Infosys is classified as a large-cap stock with a market capitalisation of approximately ₹6,63,826 crore, positioning it as a heavyweight within the Computers - Software & Consulting sector. The sector itself has been a key driver of market performance, with Infosys often regarded as a bellwether stock due to its size and influence.

Given the company’s scale and sector positioning, the observed call option activity may reflect broader market expectations about the technology and consulting space’s resilience and growth potential amid evolving economic conditions.

Expiry Patterns and Investor Positioning

The expiry date of 30 December 2025 is attracting significant attention, with the bulk of call option contracts clustered around strike prices close to the current market price. This pattern suggests that investors are hedging or speculating on moderate upside moves rather than expecting extreme volatility.

Open interest data reveals that the ₹1,600 strike price holds the largest concentration of outstanding contracts, which may act as a psychological support level for the stock price. The sizeable open interest at ₹1,620 also indicates interest in slightly higher price targets, signalling confidence in the stock’s ability to maintain or surpass current levels.

Such positioning is often interpreted as a bullish indicator, with market participants anticipating positive developments or favourable earnings outcomes in the near term.

Implications for Investors

For market participants, the concentrated call option activity in Infosys highlights a prevailing sentiment of cautious optimism. The stock’s technical strength, combined with rising delivery volumes and liquidity, supports the view that investors are positioning for continued stability or moderate appreciation in the near term.

However, the relatively narrow trading range over recent sessions suggests that while bullishness exists, it is measured and possibly awaiting further catalysts such as quarterly results, sector developments, or macroeconomic signals.

Investors should also consider the broader market context, including sector performance and overall market volatility, when interpreting these option market signals. The Computers - Software & Consulting sector remains competitive and sensitive to global technology trends, which could influence Infosys’s trajectory.

Conclusion

Infosys’s active call option market ahead of the 30 December 2025 expiry, combined with its recent price performance and technical indicators, paints a picture of investor confidence tempered by prudent positioning. The significant open interest and turnover at strike prices near the current market value indicate expectations of steady or modestly higher prices in the short term.

As the expiry date approaches, market participants will closely monitor developments that could validate or challenge this outlook. Meanwhile, the stock’s liquidity and rising investor participation provide a conducive environment for trading and portfolio adjustments.

Overall, Infosys remains a key stock to watch within the Computers - Software & Consulting sector, with its derivatives market activity offering valuable insights into investor sentiment and potential price movements.

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