Bandhan Bank Sees Sharp Open Interest Surge Amid Positive Market Positioning

Open Interest and Volume Dynamics

On 18 February 2026, Bandhan Bank’s open interest (OI) in derivatives rose sharply by 4,554 contracts, an 11.81% increase from the previous day’s 38,558 to 43,112. This substantial uptick in OI indicates fresh positions being established, reflecting heightened trader interest and possibly new directional convictions. The futures volume stood at 16,076 contracts, contributing to a futures value of ₹56,784.22 lakhs, while the options segment exhibited a massive notional value of approximately ₹4,377.42 crores. The combined derivatives turnover reached ₹57,498.21 lakhs, underscoring robust liquidity in Bandhan Bank’s derivatives market.

The underlying stock price closed at ₹173, registering a modest 0.50% gain on the day. This outperformance was notable against the Private Sector Bank sector’s decline of 0.62% and the Sensex’s fall of 0.56%, highlighting Bandhan Bank’s relative strength amid broader market weakness.

Technical Positioning and Moving Averages

Technically, Bandhan Bank is trading above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a sustained uptrend. This alignment of moving averages often attracts momentum traders and institutional investors, reinforcing bullish sentiment. The stock’s ability to maintain levels above these averages suggests strong underlying demand and positive market positioning.

However, delivery volumes tell a contrasting story. The delivery volume on 18 February was 31.81 lakh shares, down sharply by 56.06% compared to the 5-day average. This decline in investor participation at the delivery level may indicate that short-term traders and derivatives players are driving the recent price action rather than long-term holders. Such divergence between derivatives activity and delivery volumes often precedes volatility or a change in trend.

Market Capitalisation and Mojo Ratings

Bandhan Bank is classified as a small-cap stock with a market capitalisation of ₹27,805.37 crores. The company operates within the Private Sector Bank industry, a segment that has seen mixed performance amid evolving macroeconomic conditions and regulatory changes.

MarketsMOJO assigns Bandhan Bank a Mojo Score of 51.0, categorising it as a ‘Hold’ with a recent upgrade from ‘Sell’ on 4 February 2026. This rating shift reflects improving fundamentals and technicals, though the moderate score suggests caution amid ongoing market uncertainties. The Market Cap Grade stands at 3, indicating average liquidity and market presence relative to peers.

Interpreting the Open Interest Surge

The 11.81% increase in open interest is significant in the context of Bandhan Bank’s recent price action and sector performance. Rising OI alongside a modest price gain often points to fresh long positions being built, signalling bullish sentiment among derivatives traders. The large notional value in options further suggests active hedging and speculative activity, with market participants positioning for potential directional moves.

Given the stock’s outperformance relative to the sector and Sensex, the derivatives market appears to be anticipating continued strength. However, the sharp fall in delivery volumes indicates that retail or long-term investors may be less engaged, possibly awaiting clearer signals before committing capital.

Potential Directional Bets and Risks

Market participants should note that while the derivatives data points to increased bullish positioning, the divergence with delivery volumes warrants caution. If the stock fails to sustain momentum, a correction could ensue as short-term traders unwind positions. Conversely, sustained buying interest and positive sectoral trends could propel Bandhan Bank higher, especially given its technical strength and improving Mojo rating.

Investors should also consider broader macroeconomic factors impacting private sector banks, including credit growth, asset quality, and regulatory developments. Bandhan Bank’s fundamentals and risk profile remain key determinants of its medium-term trajectory.

Outlook and Investor Takeaways

Bandhan Bank’s recent surge in derivatives open interest, coupled with its technical outperformance, suggests that the stock is attracting renewed investor attention. The upgrade in Mojo Grade from Sell to Hold further supports a cautiously optimistic outlook. However, the decline in delivery volumes signals that long-term conviction remains tentative.

For investors, this environment calls for a balanced approach. Those with a higher risk appetite may consider participating in the momentum, while others might prefer to monitor developments closely, especially given the stock’s small-cap status and sector volatility.

Overall, Bandhan Bank’s derivatives activity provides valuable insight into market sentiment and positioning, highlighting the importance of integrating technical, fundamental, and market data for informed decision-making.

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