Robust Call Option Activity Highlights Investor Optimism
On 17 February 2026, Persistent Systems Ltd (NSE: PERSISTENT) emerged as the most active stock in call options, with the 5700 strike price call expiring on 24 February 2026 attracting significant attention. A total of 12,069 contracts changed hands, generating a turnover of approximately ₹1711.75 lakhs. The open interest for this strike stands at 2,684 contracts, underscoring sustained interest in this bullish position.
The underlying stock price was ₹5695.0 at the time, just shy of the 5700 strike, indicating that traders are betting on a near-term breakout above this level. This activity suggests that market participants are anticipating a rally in Persistent Systems’ shares over the coming week.
Price Performance and Technical Context
Persistent Systems has outperformed its sector by 0.45% on the day, registering a 2.14% gain compared to the sector’s 1.45% rise and the Sensex’s marginal decline of 0.06%. The stock has been on a three-day winning streak, delivering a cumulative return of 4.46% during this period. Intraday, it touched a high of ₹5735, marking a 2.74% increase from the previous close.
Technically, 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 positioning indicates short-term strength amid longer-term consolidation, a pattern often seen before a breakout. However, investor participation has waned, with delivery volumes on 16 February falling by 61.29% compared to the five-day average, signalling cautious accumulation.
Market Capitalisation and Quality Assessment
Persistent Systems commands a market capitalisation of ₹90,186 crores, categorising it as a mid-cap stock within the Computers - Software & Consulting industry. The company’s Mojo Score currently stands at 61.0, reflecting a Hold rating, a downgrade from its previous Buy grade on 5 February 2026. The Market Cap Grade is 2, indicating moderate size and liquidity.
Despite the recent downgrade, the stock’s liquidity remains adequate for sizeable trades, with a 2% threshold of the five-day average traded value supporting trade sizes up to ₹11.82 crores. This liquidity profile supports active options trading and institutional participation.
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Expiry Patterns and Strike Price Concentration
The concentration of call option activity at the 5700 strike price for the 24 February expiry is particularly telling. This strike is just above the current market price, suggesting that traders are positioning for a breakout in the near term. The high volume of contracts traded and the sizeable open interest indicate that this level is a key psychological and technical barrier.
Options traders often use such strike prices to hedge or speculate on directional moves. The elevated turnover of ₹1711.75 lakhs in call options at this strike reflects a strong conviction in upward price movement, possibly driven by positive earnings expectations, contract wins, or sectoral tailwinds in the software and consulting space.
Investor Sentiment and Sectoral Context
Persistent Systems operates in the Computers - Software & Consulting sector, which has seen mixed performance amid global technology headwinds and domestic demand fluctuations. The stock’s outperformance relative to its sector and the broader market suggests selective investor confidence in its business model and growth prospects.
However, the downgrade from Buy to Hold by MarketsMOJO on 5 February 2026 reflects caution, possibly due to valuation concerns or near-term risks. The Mojo Score of 61.0 indicates a moderate quality rating, balancing growth potential against risk factors.
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Implications for Investors and Traders
The surge in call option activity at the 5700 strike price expiry on 24 February 2026 signals a clear bullish bias among traders, who are positioning for a potential rally in Persistent Systems’ shares. This is supported by the stock’s recent outperformance and short-term momentum, despite a cautious downgrade in its fundamental rating.
Investors should weigh the technical signals against the broader sectoral and macroeconomic backdrop. The stock’s current trading below longer-term moving averages suggests that while short-term gains are possible, sustained upside may require confirmation through improved fundamentals or sectoral tailwinds.
Options traders, meanwhile, appear to be leveraging the near-term expiry to capitalise on expected volatility and directional moves. The high open interest and turnover at the 5700 strike price make this a focal point for price action in the coming week.
Conclusion
Persistent Systems Ltd’s recent call option activity highlights a growing bullish sentiment among market participants, with significant volumes concentrated at a strike price just above the current market level. While the stock has demonstrated short-term strength and outperformance relative to its sector, investors should remain mindful of the Hold rating and the need for confirmation of sustained momentum.
Given the liquidity and market cap profile, Persistent Systems remains an actively traded mid-cap stock with potential for near-term gains, especially if it breaches key technical resistance levels. Monitoring option expiry dynamics and delivery volumes will be crucial for gauging the durability of this rally.
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