Axis Bank Sees Robust Call Option Activity Amid Bullish Market Sentiment

Robust Call Option Volumes Reflect Investor Confidence

On 27 January 2026, Axis Bank’s call options saw remarkable activity, particularly at strike prices close to the current underlying value of ₹1,311.4. The 1300 strike call option led the pack with 11,136 contracts traded, generating a turnover of ₹287.45 lakhs and an open interest of 14,829 contracts. This was closely followed by the 1310 strike call with 12,801 contracts traded and a turnover of ₹145.61 lakhs, alongside an open interest of 8,480 contracts. The 1320 strike call also attracted significant attention, with 5,826 contracts traded and an open interest of 3,624 contracts.

These figures indicate a strong preference for call options slightly above or near the current market price, suggesting that traders are positioning for a potential upward move in the stock price over the coming weeks. The expiry date of 27 January 2026 saw the highest volumes, while the 24 February 2026 expiry also recorded notable activity, particularly at the 1300 strike with 4,635 contracts traded and a turnover of ₹1,162.23 lakhs, albeit with a lower open interest of 1,547 contracts.

Price Action Supports Bullish Outlook

Axis Bank’s stock price has been on a steady ascent, currently trading just 1.66% below its 52-week high of ₹1,327. The stock opened with a gap up of 2.45% on the day, reaching an intraday high of ₹1,308.7, marking a 4.03% gain. This outperformance is notable against the private sector banking sector’s modest 0.09% gain and the Sensex’s 0.37% rise on the same day.

Technical indicators further bolster the bullish case, with the stock trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Rising delivery volumes, which surged by 55.1% to 64.34 lakh shares on 23 January compared to the five-day average, reflect increased investor participation and conviction in the stock’s upward trajectory.

Mojo Score Upgrade Signals Improving Fundamentals

MarketsMOJO’s latest assessment upgraded Axis Bank’s Mojo Grade from Sell to Hold on 15 October 2025, reflecting an improvement in the bank’s financial and operational metrics. The current Mojo Score stands at 60.0, indicating a moderate quality rating. Despite the Hold grade, the upgrade from Sell suggests that the bank’s fundamentals are stabilising, which may be encouraging investors to take bullish positions in the options market.

With a market capitalisation of ₹3,91,300 crores, Axis Bank remains a large-cap heavyweight in the private sector banking space. Its Market Cap Grade is rated 1, denoting its significant size and liquidity, which supports active trading in both the cash and derivatives segments.

Expiry Patterns and Strike Price Concentration

The concentration of call option volumes at strike prices between ₹1,300 and ₹1,320, particularly for the 27 January 2026 expiry, suggests that traders are betting on the stock maintaining or surpassing these levels in the short term. The substantial open interest at these strikes indicates that many positions remain open, potentially setting the stage for volatility as expiry approaches.

Meanwhile, the 24 February 2026 expiry, though featuring lower open interest, shows significant turnover at the 1300 strike, hinting at longer-term bullish positioning. This staggered expiry interest may reflect a layered strategy by market participants, balancing near-term gains with medium-term upside potential.

Liquidity and Trading Viability

Axis Bank’s liquidity profile remains robust, with the stock’s traded value supporting trade sizes up to ₹18.15 crores based on 2% of the five-day average traded value. This liquidity ensures that both institutional and retail investors can execute sizeable trades without significant market impact, further encouraging active participation in the options market.

Investor Takeaway: Cautious Optimism Amid Positive Signals

While the surge in call option activity and the stock’s technical strength point to a bullish outlook for Axis Bank, investors should remain mindful of broader market conditions and sector-specific risks. The bank’s recent upgrade to a Hold rating by MarketsMOJO suggests improving fundamentals but stops short of a full endorsement, signalling that some caution is warranted.

Nonetheless, the strong open interest and turnover in call options near the current price level indicate that market participants are positioning for potential upside, possibly driven by expectations of favourable quarterly results or positive macroeconomic developments impacting the banking sector.

Given the stock’s proximity to its 52-week high and the active options market, traders and investors may consider monitoring strike price movements and expiry dynamics closely to capitalise on emerging trends while managing risk prudently.

Outlook for Axis Bank Ltd.

Axis Bank’s large-cap status, combined with its improving mojo score and active derivatives market, positions it as a key stock to watch in the private sector banking space. The current call option activity suggests that the market is pricing in a continuation of the recent rally, with strike prices clustered around ₹1,300 to ₹1,320 serving as critical levels to watch in the near term.

Investors should keep an eye on upcoming corporate announcements, sectoral developments, and macroeconomic indicators that could influence the bank’s trajectory. The interplay between open interest, volume, and price action in the options market will provide valuable signals for gauging market sentiment and potential price movements.

Conclusion

Axis Bank Ltd. is currently experiencing a pronounced surge in call option trading, reflecting a bullish stance among investors. Supported by strong price performance, technical indicators, and an upgraded mojo rating, the stock is attracting significant attention in the derivatives market. While caution remains advisable, the prevailing market dynamics suggest that Axis Bank could continue to be a focal point for investors seeking exposure to India’s private sector banking growth story.

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