Axis Bank Sees Surge in Call Option Activity Ahead of January Expiry

Robust Call Option Trading Highlights Bullish Positioning

On 14 January 2026, Axis Bank’s call options with a strike price of ₹1,300 expiring on 27 January 2026 emerged as the most actively traded contracts. A total of 9,504 contracts changed hands, generating a turnover of ₹726.462 lakhs. Open interest in these contracts stands at 14,113, indicating sustained interest and potential accumulation ahead of expiry.

The underlying stock closed at ₹1,287.10, just 1.44% shy of its 52-week high of ₹1,304.60, underscoring the stock’s strong price momentum. The active call option volume at the ₹1,300 strike suggests that market participants are positioning for a possible breakout above this key resistance level in the near term.

Price Performance and Technical Strength

Axis Bank outperformed its sector peers on the day, delivering a 2.63% gain compared to the private sector banking sector’s decline of 0.42% and the Sensex’s marginal fall of 0.09%. The stock touched an intraday high of ₹1,291.70, reflecting robust buying interest.

Technically, Axis Bank is trading above all major moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a strong uptrend. This technical strength is likely contributing to the bullish sentiment observed in the options market.

However, it is worth noting that delivery volumes have declined by 17.86% compared to the five-day average, with 33.13 lakh shares delivered on 13 January. This dip in investor participation could suggest some caution among long-term holders despite the positive price action.

Mojo Score and Rating Upgrade Reflect Improving Fundamentals

Axis Bank currently holds a Mojo Score of 58.0, placing it in the ‘Hold’ category. This represents an upgrade from its previous ‘Sell’ rating as of 15 October 2025, signalling improving fundamentals and market perception. Despite the upgrade, the bank’s Market Cap Grade remains at 1, reflecting its status as a large-cap entity with a market capitalisation of ₹3,95,605 crore.

The rating upgrade aligns with the recent price strength and heightened call option activity, suggesting that investors are increasingly confident in the bank’s near-term prospects. However, the ‘Hold’ grade indicates that while the outlook is positive, investors should remain cautious and monitor developments closely.

Expiry Patterns and Investor Sentiment

The concentration of call option activity at the ₹1,300 strike price, just above the current market price, is a classic indicator of bullish positioning. Traders appear to be betting on the stock breaking through this resistance level before the expiry date, which could trigger further upside momentum.

Open interest data corroborates this view, with a sizeable 14,113 contracts outstanding, suggesting that many investors are holding onto their bullish bets rather than closing positions. This persistent open interest often precedes significant price moves as expiry approaches.

Moreover, the liquidity profile of Axis Bank supports active trading, with the stock’s average traded value allowing for sizeable trade sizes up to ₹14.21 crore based on 2% of the five-day average traded value. This liquidity ensures that both institutional and retail investors can participate effectively in the derivatives market.

Sector and Market Context

Axis Bank’s outperformance is particularly notable given the broader sector and market trends. The private sector banking sector declined by 0.42% on the day, while the Sensex was nearly flat with a marginal 0.09% loss. This relative strength highlights Axis Bank’s resilience and potential leadership within its industry segment.

Investors should consider this context when analysing the call option activity, as it suggests that bullish bets on Axis Bank are not merely speculative but grounded in the bank’s comparative strength and improving fundamentals.

Risks and Considerations

Despite the positive signals, investors should remain mindful of certain risks. The recent decline in delivery volumes may indicate some hesitation among long-term investors, possibly due to valuation concerns or broader macroeconomic uncertainties.

Additionally, the proximity to the 52-week high means that the stock could face resistance, and any adverse news or sectoral headwinds could trigger profit-taking. Options traders should also be aware of the time decay factor as expiry approaches, which can impact the value of call options if the stock fails to breach key levels.

Outlook and Strategy

Given the current data, Axis Bank appears poised for a potential breakout above ₹1,300 in the coming weeks. Investors with a bullish outlook may consider call options as a leveraged way to participate in this move, while those more risk-averse might prefer to monitor the stock’s price action and volume trends closely.

For long-term investors, the recent upgrade in Mojo Grade and the bank’s strong market capitalisation underpin a cautiously optimistic view, though maintaining a diversified portfolio remains prudent.

Conclusion

The surge in call option activity for Axis Bank Ltd. ahead of the 27 January expiry reflects growing bullish sentiment among market participants. Supported by strong price performance, technical indicators, and an upgraded rating, the bank is attracting significant attention in the derivatives market. While risks remain, the current positioning suggests that investors are anticipating further gains, making Axis Bank a key stock to watch in the private sector banking space.

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