Open Interest and Volume Dynamics
On 20 Feb 2026, Axis Bank’s open interest in futures and options contracts rose sharply from 1,68,500 to 2,01,925, an increase of 33,425 contracts or 19.84%. This surge was accompanied by a robust trading volume of 1,55,263 contracts, underscoring active participation in the derivatives market. The futures value stood at ₹5,46,235.84 lakhs, while the options segment exhibited an enormous notional value of ₹78,559.38 crores, indicating substantial liquidity and interest in hedging or speculative positions.
The combined derivatives turnover of ₹5,50,401.90 lakhs further highlights the scale of activity, suggesting that traders are positioning aggressively ahead of potential price moves. The underlying stock price closed at ₹1,375, just 3.42% shy of its 52-week high of ₹1,418.30, reinforcing the bullish sentiment.
Price Performance and Technical Strength
Axis Bank outperformed its private sector banking peers by 0.63% on the day, delivering a 1.18% gain compared to the sector’s 0.47% and the Sensex’s 0.62% rise. The stock is trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a sustained uptrend and strong technical momentum. This technical backdrop likely encouraged increased derivatives activity as traders seek to capitalise on the positive price trajectory.
However, delivery volumes tell a more nuanced story. The delivery volume on 19 Feb was 15.29 lakh shares, down 55.6% from the five-day average, indicating a decline in long-term investor participation. This divergence between derivatives activity and delivery volumes suggests that much of the current interest is speculative or short-term in nature rather than driven by fundamental buying.
Market Positioning and Directional Bets
The sharp rise in open interest alongside strong volume points to fresh positions being established rather than existing ones being squared off. Given the stock’s proximity to its 52-week high and positive price momentum, it is plausible that market participants are taking bullish stances through futures and call options. The substantial notional value in options further supports the view that traders are employing complex strategies, possibly combining calls and puts to hedge or leverage directional views.
Axis Bank’s large market capitalisation of ₹4,22,974 crore and its classification as a large-cap stock make it a preferred choice for institutional and retail traders alike. The Mojo Score of 67.0, upgraded from a previous Sell rating to Hold on 15 Oct 2025, reflects improving fundamentals and market sentiment. Despite the Hold rating, the stock’s recent outperformance and derivatives activity suggest growing confidence among traders.
Built for the long haul! Consecutive quarters of strong growth landed this Small Cap from Chemicals on our Reliable Performers list. Sustainable gains are clearly ahead!
- - Long-term growth stock
- - Multi-quarter performance
- - Sustainable gains ahead
Implications for Investors and Traders
The surge in open interest and volume in Axis Bank’s derivatives signals a market expectation of continued price strength or increased volatility. Traders may be positioning for a breakout above the recent highs or hedging against potential downside risks. The divergence between falling delivery volumes and rising derivatives activity suggests that short-term traders and speculators are currently more active than long-term investors.
Given the stock’s liquidity, with a trade size capacity of ₹12.83 crore based on 2% of the five-day average traded value, Axis Bank remains an attractive instrument for sizeable trades without significant market impact. This liquidity supports the active derivatives market and allows for efficient price discovery.
Sector and Market Context
Within the private sector banking space, Axis Bank’s outperformance relative to its peers and the broader Sensex indicates a relative strength that may attract further capital inflows. The banking sector has been under scrutiny due to macroeconomic factors and regulatory changes, but Axis Bank’s improving fundamentals and technical positioning provide a degree of resilience.
Investors should monitor open interest trends alongside price action to gauge the sustainability of the current rally. A sustained increase in OI coupled with rising prices typically confirms bullish sentiment, whereas a rise in OI with falling prices may indicate bearish positioning or short covering.
Axis Bank Ltd. or something better? Our SwitchER feature analyzes this large-cap Private Sector Bank stock and recommends superior alternatives based on fundamentals, momentum, and value!
- - SwitchER analysis complete
- - Superior alternatives found
- - Multi-parameter evaluation
Outlook and Conclusion
Axis Bank’s recent derivatives market activity, marked by a near 20% jump in open interest and strong volume, reflects growing optimism among traders about the stock’s near-term prospects. The technical strength, combined with a Mojo Grade upgrade from Sell to Hold, suggests that the bank is stabilising after previous weakness and may be poised for further gains.
Nonetheless, the decline in delivery volumes warrants caution, as it indicates that long-term investor conviction has yet to fully recover. Market participants should watch for confirmation through sustained price advances and continued open interest growth to validate the bullish thesis.
For investors and traders alike, Axis Bank remains a key stock to monitor within the private sector banking space, offering both opportunities and risks amid evolving market dynamics.
Limited Period Only. Start at Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Get 71% Off →
