Infosys Sees Robust Call Option Activity Amid Narrow Trading Range

Call Option Activity Highlights

Among the most actively traded call options on the National Stock Exchange, Infosys Ltd’s call options with a strike price of ₹1,600 expiring on 30 December 2025 have recorded substantial volumes. A total of 6,308 contracts exchanged hands, generating a turnover of approximately ₹693.12 lakhs. The open interest for these contracts stands at 18,935, indicating a strong level of outstanding positions held by market participants.

This level of activity suggests a pronounced interest in bullish exposure at or near the ₹1,600 strike price, which is slightly above the current underlying stock value of ₹1,586.90. The concentration of open interest at this strike price may reflect expectations of the stock moving beyond this level by the expiry date, or a strategic hedging approach by institutional and retail investors alike.

Stock Price Performance and Market Context

On the trading day under review, Infosys recorded a price gain of 0.33%, outperforming its sector, which declined by 0.20%, and the Sensex benchmark, which fell by 0.23%. This outperformance follows a three-day period of consecutive declines, marking a potential trend reversal. The stock traded within a narrow range of ₹15.3, reflecting a period of consolidation and subdued volatility.

Technical indicators show that Infosys’s share price remains above its 20-day, 50-day, 100-day, and 200-day moving averages, signalling a generally positive medium- to long-term trend. However, it is currently trading below its 5-day moving average, which may indicate short-term resistance or profit-taking pressures.

Investor participation, as measured by delivery volume, has shown a decline. On 10 December, the delivery volume was recorded at 38.73 lakh shares, representing a 40.09% reduction compared to the five-day average delivery volume. This drop in participation could suggest cautious sentiment or a wait-and-watch approach among shareholders.

Liquidity and Market Capitalisation

Infosys is classified as a large-cap stock with a market capitalisation of ₹6,58,363 crore, underscoring its significant presence in the Computers - Software & Consulting sector. The stock’s liquidity is sufficient to support sizeable trades, with the average traded value over five days allowing for trade sizes up to ₹29.33 crore based on 2% of the average value. This liquidity profile supports active trading in both the cash and derivatives segments.

Investor Sentiment and Positioning

The concentration of call option activity at the ₹1,600 strike price, combined with the underlying stock’s recent price behaviour, suggests a cautiously optimistic stance among market participants. The open interest figure of 18,935 contracts indicates that a significant number of traders are maintaining bullish positions or hedging strategies that anticipate upward price movement by the end of December.

Such positioning is consistent with the stock’s outperformance relative to its sector and the broader market indices on the day. However, the narrow trading range and the stock’s position below the short-term 5-day moving average imply that investors are balancing optimism with prudence, possibly awaiting further market cues or corporate developments.

Infosys’s sector, Computers - Software & Consulting, remains a key focus area for investors given the ongoing digital transformation trends and demand for IT services globally. The company’s large market capitalisation and liquidity profile make it a preferred choice for both institutional and retail investors seeking exposure to this sector.

Expiry Patterns and Market Implications

The 30 December 2025 expiry date for the active call options is approaching, which often leads to increased volatility and trading volumes as market participants adjust or close positions. The strike price of ₹1,600 is a critical level to watch, as it lies just above the current market price, making it a focal point for potential price breakthroughs or resistance.

Open interest levels at this strike price can influence price dynamics, as traders with significant positions may engage in hedging or unwinding strategies that impact the underlying stock’s price. The interplay between the derivatives market and the cash market is particularly relevant for Infosys, given its large market cap and active investor base.

Investors and traders should monitor the stock’s price action relative to key moving averages and volume trends in the coming weeks to gauge the sustainability of the current momentum and the likelihood of a decisive move beyond the ₹1,600 level.

Conclusion

Infosys Ltd’s recent call option activity highlights a notable degree of bullish positioning among market participants, centred around the ₹1,600 strike price with expiry at the end of December 2025. The stock’s performance, characterised by a narrow trading range and outperformance relative to its sector and the Sensex, reflects a balanced market sentiment combining optimism with caution.

Liquidity and market capitalisation support active trading, while technical indicators suggest a positive medium-term trend tempered by short-term resistance. As expiry approaches, the interaction between derivatives and cash markets will be crucial in shaping Infosys’s price trajectory, making it a key stock to watch for investors interested in the Computers - Software & Consulting sector.

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