Axis Bank Sees Surge in Call Option Activity Amid Bullish Momentum

Robust Call Option Activity Highlights Investor Optimism

On 28 Jan 2026, Axis Bank’s call options expiring on 24 Feb 2026 emerged as some of the most actively traded contracts on the National Stock Exchange. The strike prices of ₹1,350 and ₹1,400 attracted substantial volumes, with 4,317 and 5,773 contracts traded respectively. The turnover for the ₹1,350 strike call option stood at ₹1093.55 lakhs, while the ₹1,400 strike call generated ₹685.54 lakhs in turnover. Open interest figures further underscore the sustained interest, with 1,804 contracts open at ₹1,350 and 1,416 at ₹1,400 strikes.

These figures are particularly significant given the underlying stock price of ₹1,352, indicating that traders are positioning for a potential rally beyond the current levels. The concentration of activity in these strikes suggests a consensus expectation that Axis Bank’s share price could breach the ₹1,400 mark within the next month.

Price Performance and Technical Strength

Axis Bank’s stock price has been on a strong run, recently touching an intraday high of ₹1,369.4, marking a fresh 52-week peak. The stock outperformed its sector by 1.07% on the day, registering a gain of 2.63% compared to the private sector banking sector’s 1.46% and the broader Sensex’s 0.52% rise. This outperformance is supported by a two-day consecutive gain, delivering a cumulative return of 7.39% over this period.

Technical indicators reinforce the bullish outlook, with the stock trading above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day. Such alignment across multiple timeframes typically signals strong momentum and investor confidence. Additionally, the stock opened with a gap up of 2.45%, reflecting positive sentiment at market open.

Rising Investor Participation and Liquidity

Investor engagement has surged, as evidenced by the delivery volume of 1.56 crore shares on 27 Jan 2026, which represents a remarkable 231.47% increase over the five-day average delivery volume. This heightened participation indicates that investors are not merely trading the stock intraday but are committing to holding positions, a bullish sign for medium-term prospects.

Liquidity remains robust, with the stock’s average traded value supporting trade sizes up to ₹28.53 crore based on 2% of the five-day average. This ensures that institutional and retail investors alike can transact sizeable volumes without significant price impact, further encouraging active participation.

Mojo Score Upgrade Reflects Improving Fundamentals

MarketsMOJO’s latest assessment upgraded Axis Bank’s Mojo Grade from Sell to Hold on 15 Oct 2025, reflecting an improvement in the bank’s financial and operational metrics. The current Mojo Score stands at 67.0, signalling moderate confidence in the stock’s prospects. Despite the Hold rating, the upgrade from Sell indicates a positive shift in fundamentals, which may be contributing to the bullish positioning seen in the options market.

Axis Bank’s market capitalisation remains substantial at ₹4,08,177 crore, categorising it firmly as a large-cap stock. The bank’s standing in the private sector banking industry continues to be strong, supported by steady earnings growth and improving asset quality metrics.

Expiry Patterns and Strategic Positioning

The focus on the 24 Feb 2026 expiry date for call options suggests that traders are looking at a near-term horizon for potential price appreciation. The high open interest at the ₹1,350 and ₹1,400 strikes indicates that many investors are either buying calls to benefit from upside or writing calls to capitalise on premium income while expecting moderate price gains.

Given the underlying price of ₹1,352, the ₹1,350 strike is effectively at-the-money, while the ₹1,400 strike is out-of-the-money, implying a bullish stance with expectations of a price rise of approximately 3.5% within the next month. This aligns with the recent price momentum and technical strength observed in the stock.

Sector and Market Context

Axis Bank’s outperformance relative to its sector and the broader Sensex highlights its relative strength in a competitive banking environment. The private sector banking space has been under pressure due to macroeconomic uncertainties and regulatory challenges, but Axis Bank’s improving metrics and investor interest suggest it is well-positioned to navigate these headwinds.

Investors should, however, remain cautious given the Hold rating and the potential for volatility around earnings announcements or macroeconomic developments. The call option activity, while bullish, also reflects speculative positioning that could reverse if market conditions change.

Investor Takeaway

Axis Bank’s recent surge in call option volumes and open interest, combined with its strong price performance and technical indicators, point to a growing bullish consensus among market participants. The stock’s ability to sustain gains above key moving averages and its rising delivery volumes suggest genuine investor conviction rather than purely speculative trading.

However, the Hold Mojo Grade and the bank’s large-cap status imply that while upside potential exists, investors should weigh risks carefully and consider broader market conditions. The near-term expiry focus on 24 Feb 2026 calls indicates that traders are looking for catalysts or continued momentum in the coming weeks.

For investors seeking exposure to the private sector banking sector, Axis Bank remains a key stock to watch, but diversification and monitoring of alternative opportunities may enhance portfolio resilience.

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