Axis Bank Ltd. Dips 2.09% Despite 52-Week High; 4 Key Factors Shaping the Week

2 February 2026: Sharp Decline Amid Market Weakness

Axis Bank opened the week on a weak note, closing at Rs.1,317.85, down Rs.52.40 or 3.82% from the previous Friday’s close of Rs.1,370.25. This decline outpaced the Sensex’s 1.03% drop to 35,814.09, reflecting broader market concerns. The stock’s volume was robust at 275,979 shares, indicating active selling pressure. The drop came amid a general market sell-off, with investors cautious ahead of key sectoral developments.

3 February 2026: New 52-Week High and Intraday Surge

Axis Bank staged a remarkable recovery on 3 February, surging 2.86% to close at Rs.1,355.55. Intraday, the stock hit a new 52-week and all-time high of Rs.1,418.3, marking a significant milestone. The day’s trading was characterised by a gap-up opening of 4.4%, signalling strong buying interest. The stock outperformed the Sensex, which gained 2.63% to 36,755.96, and the private sector banking sector, which rose 2.52%.

Robust institutional interest was evident, with Axis Bank emerging as one of the most actively traded stocks by value, recording a traded volume of over 40 lakh shares and a turnover exceeding Rs.552 crore. Despite the strong price rally, delivery volumes declined by 43% compared to the five-day average, suggesting some cautious profit-booking by long-term holders.

Technically, the stock traded above all key moving averages (5-day, 20-day, 50-day, 100-day, and 200-day), reinforcing a sustained uptrend. The weighted average price volatility was notably high at 201.34%, reflecting active trading and sharp intraday swings.

3 February 2026: Heavy Put Option Activity Signals Caution

Alongside the price surge, Axis Bank witnessed significant put option activity, particularly at the ₹1,300 strike price expiring on 24 February 2026. A total of 2,646 contracts were traded, generating a turnover of approximately Rs.13.38 crore, with open interest standing at 2,221 contracts. This surge in put options, despite the stock trading well above the strike price, indicates a complex market sentiment blending hedging strategies and potential bearish positioning.

The concentration of put contracts at a strike price roughly 4.6% below the current market price suggests investors are either protecting recent gains or anticipating a near-term correction. The options expiry less than three weeks away may be contributing to this heightened activity, as traders adjust portfolios amid volatility.

4 and 5 February 2026: Consolidation and Mild Declines

Following the strong rally, Axis Bank’s stock price consolidated with mild declines on 4 and 5 February. On 4 February, the stock closed at Rs.1,338.35, down 1.27%, while the Sensex gained 0.37%. The next day, the stock slipped further by 0.58% to Rs.1,330.65, underperforming the Sensex’s 0.53% decline. Trading volumes remained healthy, with 175,910 shares on 4 February and 290,597 shares on 5 February, indicating sustained investor interest despite the slight pullback.

6 February 2026: Week Ends with Modest Gain

Axis Bank closed the week on a positive note, gaining 0.82% to Rs.1,341.55 on 6 February, while the Sensex edged up 0.10% to 36,730.20. The stock’s volume was lower at 104,821 shares, reflecting a quieter trading session. Despite the modest gain, the stock ended the week down 2.09% from the previous Friday’s close, underperforming the Sensex’s 1.51% weekly advance.

Daily Price Comparison: Axis Bank vs Sensex (2–6 February 2026)

Key Takeaways from the Week

Strong Intraday Rally and New High: Axis Bank’s new 52-week and all-time high of Rs.1,418.3 on 3 February demonstrated robust buying interest and technical strength, supported by institutional participation and active trading volumes.

Mixed Weekly Performance: Despite the midweek surge, the stock closed the week down 2.09%, underperforming the Sensex’s 1.51% gain, reflecting profit-taking and cautious investor sentiment.

Heavy Put Option Activity: The significant put option volumes at the ₹1,300 strike price suggest hedging strategies or bearish bets, indicating market participants are balancing optimism with risk management ahead of the February expiry.

Technical Positioning: Trading above all major moving averages signals a sustained uptrend, but declining delivery volumes and option activity warrant close monitoring for potential volatility or correction.

Conclusion

Axis Bank Ltd.’s week was marked by a sharp intraday rally to a new 52-week high, supported by strong institutional interest and technical momentum. However, the stock’s inability to sustain gains and the surge in put option activity reflect a nuanced market outlook, with investors employing hedging strategies amid mixed signals. The stock’s weekly decline of 2.09% against the Sensex’s 1.51% rise underscores the cautious stance prevailing despite underlying strength. Moving forward, monitoring open interest trends and delivery volumes will be crucial to gauge whether the recent volatility signals a short-term correction or consolidation within a longer-term uptrend.

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