Axis Bank Sees Surge in Call Option Activity as Stock Hits New 52-Week High

Robust Call Option Activity Highlights Investor Optimism

On 6 January 2026, Axis Bank's call options with a strike price of ₹1,300 and expiry on 27 January 2026 emerged as the most actively traded contracts in the market. A total of 9,077 contracts changed hands, generating a turnover of approximately ₹1,229.37 lakhs. The open interest for these contracts stands at 12,329, reflecting sustained investor interest and potential accumulation ahead of the expiry date.

The underlying stock price was ₹1,297.40 at the time, hovering just below the ₹1,300 strike price, indicating that traders are positioning for a breakout above this key level. This activity suggests a strong bullish bias, with market participants anticipating further upside in the near term.

Price Performance and Technical Strength

Axis Bank has been on a positive trajectory, hitting a new 52-week high of ₹1,304.60 on the day of reporting. The stock outperformed its sector by 0.56% and has delivered a 2.19% return over the past two consecutive trading days. This momentum is underpinned by the stock trading above all major moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a robust uptrend.

Investor participation has also surged, with delivery volumes reaching 47.65 lakh shares on 5 January 2026, marking an 83.16% increase compared to the five-day average. Such heightened delivery volumes indicate genuine buying interest rather than speculative trading, reinforcing the bullish outlook.

Market Capitalisation and Sector Context

With a market capitalisation of ₹3,99,267 crore, Axis Bank is firmly positioned as a large-cap stock within the private sector banking industry. The bank’s recent upgrade in its Mojo Grade from Sell to Hold on 15 October 2025, accompanied by a Mojo Score of 58.0, reflects improving fundamentals and a more balanced risk-reward profile. Despite the Hold rating, the stock’s recent price action and option market activity suggest growing investor confidence.

Comparative Performance and Liquidity Considerations

On the day of analysis, Axis Bank recorded a 1-day return of 0.93%, significantly outperforming the private sector bank sector’s 0.16% gain and the broader Sensex, which declined by 0.20%. This relative strength highlights the stock’s appeal amid mixed market conditions.

Liquidity remains ample, with the stock’s traded value supporting a trade size of approximately ₹12.25 crore based on 2% of the five-day average traded value. This level of liquidity ensures that institutional and retail investors can execute sizeable trades without significant price impact, further encouraging active participation in both the cash and derivatives markets.

Option Expiry Patterns and Strategic Implications

The concentration of call option activity at the ₹1,300 strike price, close to the current market price, suggests that traders are positioning for a breakout in the coming weeks. The expiry date of 27 January 2026 provides a near-term horizon for this anticipated move, with open interest levels indicating that many investors are holding onto their positions rather than closing out prematurely.

This pattern often precedes a strong directional move, as option traders hedge or speculate on expected volatility. The sizeable open interest and turnover in these call options imply that market participants are confident in Axis Bank’s ability to sustain or accelerate its upward momentum.

Outlook and Investor Takeaways

Axis Bank’s recent price strength, combined with the surge in call option activity, points to a growing consensus among investors that the stock is poised for further gains. The technical setup is supported by strong delivery volumes and a favourable liquidity profile, making it an attractive candidate for both short-term traders and longer-term investors.

However, the current Mojo Grade of Hold and a moderate Mojo Score of 58.0 suggest that while the stock has improved from its previous Sell rating, investors should remain cautious and monitor broader market conditions and sectoral trends. The banking sector remains sensitive to macroeconomic factors such as interest rate movements and credit growth, which could influence Axis Bank’s trajectory.

For investors looking to capitalise on the bullish momentum, the January expiry call options at the ₹1,300 strike price offer a strategic way to participate in potential upside while managing risk. The elevated open interest and turnover levels provide ample liquidity for entering or exiting positions efficiently.

Conclusion

In summary, Axis Bank Ltd. is currently attracting significant attention in the derivatives market, with call option volumes and open interest signalling strong bullish positioning. The stock’s technical and fundamental indicators align to support a positive near-term outlook, although investors should weigh these factors against the Hold rating and sector-specific risks. As expiry approaches, monitoring option market dynamics will be crucial for gauging investor sentiment and potential price movements.

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