Bandhan Bank Ltd. Sees Significant Open Interest Surge Amid Mixed Market Signals

Open Interest and Volume Dynamics

On 27 Jan 2026, Bandhan Bank’s open interest (OI) in derivatives rose sharply to 51,356 contracts from 46,050 the previous session, marking an increase of 5,306 contracts or 11.52%. This expansion in OI was accompanied by a futures volume of 34,487 contracts, indicating robust trading activity. The futures value stood at approximately ₹1,21,329 lakhs, while the options segment contributed a substantial ₹6,647 crore in notional value, culminating in a total derivatives value exceeding ₹1,23,114 lakhs.

The underlying stock price closed at ₹148, marginally down by 0.08% on the day, underperforming the private sector banking sector’s gain of 0.30% and the Sensex’s 0.16% rise. This divergence suggests that while derivatives traders are increasing their exposure, the cash market is exhibiting caution.

Market Positioning and Directional Bets

The surge in open interest alongside elevated volumes typically signals fresh capital entering the market, often reflecting new directional bets. In Bandhan Bank’s case, the increase in OI after two consecutive days of gains followed by a price decline hints at a possible shift in sentiment. Traders may be positioning for increased volatility or a potential trend reversal.

Notably, the stock’s price remains above its 5-day, 20-day, and 50-day moving averages but below the longer-term 100-day and 200-day averages. This mixed technical picture suggests short-term strength amid longer-term resistance, which could be influencing derivative traders to hedge or speculate on near-term price swings.

Investor participation has also intensified, with delivery volumes on 23 Jan soaring to 2.67 crore shares, a staggering 479.1% increase over the five-day average. This spike in delivery volume indicates genuine buying interest, contrasting with the derivatives market’s more speculative positioning.

Implications of the Mojo Score and Market Cap Grade

Bandhan Bank currently holds a Mojo Score of 38.0, categorised as a Sell rating, downgraded from Hold on 31 Oct 2025. This downgrade reflects deteriorating fundamentals or technical outlook as assessed by MarketsMOJO’s proprietary analytics. The bank’s market capitalisation stands at ₹24,037.30 crore, placing it in the small-cap category with a market cap grade of 3, indicating moderate liquidity and investor interest.

The stock’s liquidity profile supports trading sizes up to ₹6.52 crore based on 2% of the five-day average traded value, making it accessible for institutional and retail traders alike. However, the slight negative day change of -0.07% and underperformance relative to sector peers suggest caution among investors.

Sector and Broader Market Context

The private sector banking industry has generally exhibited resilience, with many constituents showing steady gains. Bandhan Bank’s recent price action and derivatives activity, however, point to a divergence from this trend. The stock’s failure to sustain gains beyond the 100-day and 200-day moving averages may be a technical barrier that traders are closely monitoring.

Derivative traders appear to be increasing their exposure, possibly anticipating a breakout or a correction. The elevated open interest combined with rising volumes could also indicate a build-up of short positions or protective hedges, given the stock’s recent volatility.

Investor Takeaways and Outlook

For investors and traders, the recent surge in Bandhan Bank’s derivatives open interest is a signal to closely monitor market positioning and price action. The mixed technical indicators and underperformance relative to sector peers suggest that the stock may be at a critical juncture.

Those with a bullish outlook might view the rising open interest and volume as a precursor to a potential breakout, especially if the stock can reclaim levels above its 100-day and 200-day moving averages. Conversely, the downgrade in Mojo Grade to Sell and the recent price weakness caution against aggressive long positions without clear confirmation.

Given the substantial delivery volume spike earlier in the month, there remains underlying investor interest in the stock, which could provide support in case of short-term corrections. However, the derivatives market’s increased activity also raises the possibility of heightened volatility in the near term.

Overall, Bandhan Bank’s current market dynamics reflect a complex interplay of fundamental concerns and speculative positioning, warranting a balanced and vigilant approach from market participants.

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