Axis Bank Sees Surge in Call Option Activity Ahead of Expiry

Strong Call Option Volumes Highlight Investor Confidence

Data from the options market reveals that Axis Bank’s call options with strike prices of ₹1380, ₹1390, ₹1400, and ₹1410 have attracted the highest trading volumes on 23 February 2026. The ₹1400 strike call option led the pack with 11,566 contracts traded, generating a turnover of ₹312.28 lakhs and an open interest of 4,831 contracts. Close behind, the ₹1380 strike call saw 5,098 contracts traded with a turnover of ₹376.93 lakhs and an open interest of 5,586 contracts, indicating sustained interest at slightly lower strike levels.

The ₹1410 and ₹1390 strike calls also recorded robust activity, with 5,914 and 4,990 contracts traded respectively. The underlying stock price stood at ₹1395.4, just 1.66% shy of its 52-week high of ₹1418.3, underscoring the relevance of these strike prices as key levels for traders positioning themselves for a potential upward move.

Expiry Patterns and Market Sentiment

All the active call options are set to expire on 24 February 2026, which is tomorrow, intensifying the focus on short-term directional bets. The concentration of open interest and turnover around the ₹1380 to ₹1410 strike range suggests that market participants are anticipating the stock to either sustain or surpass these levels in the immediate term. This is further supported by the stock’s recent performance, which has seen a 2.85% gain over the last two consecutive trading days.

Axis Bank’s stock price has also outperformed its sector by 1.21% and the broader Sensex by 1.32% on the day, closing with a 1.96% gain. The intraday high touched ₹1398, representing a 2.17% increase, and the stock is trading above all major moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical strength aligns with the bullish sentiment reflected in the options market.

Mojo Score Upgrade Reflects Improving Fundamentals

MarketsMOJO’s latest assessment upgraded Axis Bank’s Mojo Grade from Sell to Hold on 15 October 2025, with a current Mojo Score of 67.0. The bank’s market capitalisation stands at a substantial ₹4,24,699 crores, categorising it as a large-cap stock with a Market Cap Grade of 1. This upgrade signals improving fundamentals and a stabilising outlook, which may be encouraging investors to take bullish positions through call options.

Liquidity and Investor Participation Trends

Despite the bullish momentum, investor participation has shown signs of moderation. Delivery volume on 20 February 2026 was recorded at 25.16 lakh shares, marking a 21.41% decline against the five-day average delivery volume. This suggests some cautiousness among long-term holders, even as short-term traders ramp up activity in the options market.

Liquidity remains adequate for sizeable trades, with the stock’s average traded value supporting a trade size of approximately ₹12.3 crores based on 2% of the five-day average. This liquidity profile facilitates active participation by institutional and retail investors alike, especially in derivatives trading.

Strike Price Analysis and Potential Price Targets

The clustering of call option interest around the ₹1380 to ₹1410 strike prices indicates that traders are positioning for a breakout above the current market price. The ₹1400 strike, in particular, stands out as a psychological resistance level, with the highest number of contracts traded. Should the stock close above this level at expiry, these call options would move into the money, potentially triggering further buying interest.

Conversely, the open interest at the ₹1380 strike remains the largest, suggesting a strong base of bullish bets just below the current price. This could act as a support zone in the near term, providing a cushion against downside risks.

Sector and Market Context

Axis Bank operates within the private sector banking industry, which has shown resilience amid macroeconomic challenges. The bank’s outperformance relative to its sector peers and the Sensex on 23 February 2026 highlights its relative strength. Investors appear to be favouring Axis Bank as a proxy for private banking growth, supported by its improving credit metrics and digital initiatives.

Implications for Investors

The pronounced call option activity in Axis Bank suggests that traders are positioning for a near-term rally, possibly driven by positive earnings expectations, macroeconomic tailwinds, or sectoral momentum. The stock’s technical indicators support this view, with prices trading above key moving averages and near 52-week highs.

However, the decline in delivery volumes signals some caution among longer-term investors, which could temper the upside if broader market conditions deteriorate. Investors should monitor the stock’s performance at expiry tomorrow, particularly whether it can sustain levels above the ₹1400 strike price, which would validate the bullish sentiment embedded in the options market.

Given the current Mojo Grade of Hold, investors may consider a balanced approach, weighing the potential for gains against the risks of volatility around expiry. The bank’s large-cap status and improving fundamentals provide a solid foundation, but market participants should remain vigilant to sectoral and macroeconomic developments.

Conclusion

Axis Bank Ltd.’s active call option trading ahead of the 24 February 2026 expiry highlights a bullish stance among market participants, with significant volumes clustered around strike prices close to the current market value. The stock’s technical strength, recent upgrades in rating, and sector outperformance underpin this optimism. Nevertheless, cautious investor participation and the proximity to key resistance levels warrant careful monitoring in the coming sessions.

For investors seeking exposure to private sector banking with a blend of growth and stability, Axis Bank remains a noteworthy candidate, albeit with a Hold rating reflecting a balanced risk-reward profile.

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