Bandhan Bank Gains 6.30%: 3 Key Factors Driving the Weekly Rally

23 February: Steady Start with Modest Gains

Bandhan Bank began the week on a positive note, closing at Rs.173.60, up Rs.2.30 or 1.34% on the day. This outpaced the Sensex’s 0.39% gain, signalling early investor confidence. The stock traded on moderate volume of 111,652 shares, setting the tone for the week’s upward momentum.

24 February: Strong Rally Amid Market Weakness

The stock surged 3.95% to close at Rs.180.45, marking the week’s largest daily gain. This came despite a 0.78% decline in the Sensex, highlighting Bandhan Bank’s relative strength. Volume spiked to 795,710 shares, reflecting heightened trading interest. The sharp gain was supported by positive technical signals and growing optimism among traders.

25 February: Continued Uptrend with Moderate Gains

Bandhan Bank extended its rally, adding 1.30% to close at Rs.182.80. The Sensex also recovered slightly, gaining 0.41%. Volume moderated to 319,810 shares, but the stock maintained its position above key moving averages, reinforcing the bullish trend. Delivery volumes, however, showed a decline, suggesting some caution among longer-term holders.

26 February: Surge in Call Option Activity Near 52-Week High

On 26 February, Bandhan Bank’s shares climbed 1.81% to Rs.186.10, approaching its 52-week high of Rs.192.48. The day was marked by a significant surge in call option activity, with 2,718 contracts traded at the ₹190 strike expiring 30 March 2026, generating a turnover of approximately ₹60.37 crores. Open interest stood at 1,130 contracts, signalling strong bullish positioning among derivatives traders.

The stock outperformed the private sector banking sector by 2.17%, closing with a gain of 2.76% on the day. Technically, Bandhan Bank traded above all major moving averages, confirming a robust uptrend. However, delivery volumes declined by 21.59% compared to the five-day average, indicating some profit-taking or cautious stance among long-term investors.

26 February: Sharp Open Interest Surge Reflects Growing Derivative Market Interest

Alongside the price rally, Bandhan Bank’s derivatives segment saw a 12.17% increase in open interest to 32,285 contracts, accompanied by a volume of 32,495 contracts. The futures segment accounted for a notional value of approximately ₹53,295 lakhs, while options contributed ₹17,284.85 crores, culminating in a total derivatives market value of ₹58,394.52 lakhs.

This surge in open interest and volume indicates fresh positions being established, reflecting heightened market participation and bullish sentiment. The stock’s price closed just 3.51% shy of its 52-week high, reinforcing the positive momentum. Despite this, delivery volumes remained subdued, suggesting a preference for derivatives exposure over outright stock accumulation among some investors.

27 February: Mixed Signals as Open Interest Rises Amid Price Decline

On the final trading day of the week, Bandhan Bank’s stock price declined 2.15% to Rs.182.10, underperforming both the private sector banking sector’s 1.10% fall and the Sensex’s 1.16% drop. The stock touched an intraday low of Rs.177.68, with heavier volume traded near the lows, signalling short-term selling pressure.

Contrasting the price weakness, open interest surged 10.41% to 35,468 contracts, with volume at 36,045 contracts. The futures segment’s value rose to approximately ₹65,015 lakhs, and options to ₹17,683.76 crores, totalling ₹69,741.45 lakhs in derivatives exposure. This divergence suggests a complex market dynamic, with both fresh long and short positions being taken amid uncertainty.

Notably, delivery volume on 26 February jumped 98.16% over the five-day average to 69.4 lakh shares, indicating renewed investor participation in the underlying equity despite the price dip. The stock remained above all key moving averages, preserving its medium- to long-term technical strength.

Key Takeaways

Bandhan Bank’s 6.30% weekly gain against a 0.96% decline in the Sensex highlights its strong relative performance. The stock’s rally was fuelled by sustained buying interest, particularly in the derivatives market, where open interest surged over 22% across the week, signalling fresh bullish bets.

The approach to the 52-week high and heavy call option activity at the ₹190 strike price indicate trader optimism for a breakout. Technical indicators remain favourable, with the stock trading above all major moving averages, supporting the uptrend.

However, the decline in delivery volumes midweek and the price dip on 27 February amid rising open interest suggest a nuanced market stance. This may reflect profit-taking, short-term caution, or repositioning by traders anticipating volatility.

The Mojo Score of 51.0 and Hold rating reflect a balanced outlook, acknowledging the stock’s momentum while signalling the need for vigilance amid mixed signals.

Conclusion

Bandhan Bank’s performance this week underscores a strong technical and derivatives-driven rally, with the stock outperforming the broader market and sector peers. The surge in call option activity and open interest highlights growing bullish sentiment, while the recent price correction and delivery volume fluctuations introduce cautionary notes.

Investors and traders should monitor the evolving open interest trends and price action closely, as these will provide critical insights into the sustainability of the current momentum. The stock’s position near its 52-week high and robust technical setup suggest potential for further gains, but the mixed market signals warrant a measured approach.

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