Bandhan Bank Sees Sharp Open Interest Surge Signalling Increased Derivative Market Activity

Open Interest and Volume Dynamics

On 26 Feb 2026, Bandhan Bank’s open interest in futures and options contracts rose sharply to 32,285 from the previous 28,781, marking an increase of 3,504 contracts or 12.17%. This rise in OI was accompanied by a volume of 32,495 contracts, indicating robust trading activity. The futures segment alone accounted for a value of approximately ₹53,295 lakhs, while the options segment’s notional value was substantially higher at ₹17,284.85 crores, culminating in a total derivatives value of ₹58,394.52 lakhs.

The underlying stock price closed at ₹185, just 3.51% shy of its 52-week high of ₹192.48, underscoring the bullish sentiment prevailing in the market. The stock outperformed its sector by 1.89% on the day, registering a 1.61% gain, and has been on a consistent upward trajectory, delivering a 9.72% return over the past five trading sessions.

Price Momentum and Moving Averages

Bandhan Bank’s price action has been notably strong, with the stock trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a sustained uptrend. The intraday high touched ₹190.23, a 4.02% rise from the previous close, reflecting aggressive buying interest. Despite this, delivery volumes have declined by 21.59% compared to the five-day average, suggesting that short-term traders and derivatives players are driving the recent momentum rather than long-term investors.

Market Positioning and Directional Bets

The surge in open interest alongside rising prices typically indicates fresh long positions being established, pointing to bullish market expectations. The 12.17% increase in OI, coupled with rising volumes, suggests that traders are positioning for further upside in Bandhan Bank’s shares. This is reinforced by the stock’s consistent gains over the past week and its proximity to the 52-week high.

However, the decline in delivery volumes hints at a cautious stance among long-term holders, possibly awaiting confirmation of sustained momentum before committing further capital. The liquidity profile remains adequate, with the stock’s average traded value supporting trade sizes of up to ₹3.34 crores, ensuring smooth execution for institutional participants.

Mojo Score and Analyst Ratings

Bandhan Bank currently holds a Mojo Score of 51.0, placing it in the ‘Hold’ category, an upgrade from its previous ‘Sell’ rating as of 4 Feb 2026. This reflects a cautious but improving outlook from analysts, who acknowledge the stock’s recent strength but remain mindful of sector headwinds and valuation considerations. The market capitalisation stands at ₹29,962.46 crores, categorising it as a small-cap within the private sector banking space.

Sector and Benchmark Comparison

On the day of analysis, Bandhan Bank’s 1-day return of 1.70% outpaced the private sector banking sector’s decline of 0.17% and the Sensex’s modest gain of 0.05%. This relative outperformance highlights the stock’s resilience amid broader market fluctuations. The private sector banking sector has been under pressure due to tightening credit conditions and regulatory scrutiny, making Bandhan Bank’s gains noteworthy.

Implications for Investors and Traders

The combination of rising open interest, increasing volumes, and positive price momentum suggests that derivatives traders are betting on continued upside for Bandhan Bank. Investors should monitor the sustainability of this trend, particularly watching for any reversal in open interest or a spike in delivery volumes that might indicate profit-taking or a shift in sentiment.

Given the stock’s proximity to its 52-week high and the current ‘Hold’ rating, cautious investors may prefer to wait for a confirmed breakout above ₹192.48 before increasing exposure. Conversely, traders with a higher risk appetite might consider leveraging the derivatives market to capitalise on the prevailing bullish sentiment, while employing appropriate risk management strategies.

Conclusion: A Watchful Optimism

Bandhan Bank Ltd.’s recent surge in open interest and strong derivatives activity underscore a growing bullish consensus among traders. The stock’s consistent gains, supported by positive technical indicators and relative sector outperformance, provide a constructive backdrop for further appreciation. However, the tempered delivery volumes and the ‘Hold’ Mojo Grade counsel a measured approach.

Investors and traders should continue to monitor open interest trends, volume patterns, and price action closely to gauge the durability of this momentum. The evolving market positioning in Bandhan Bank’s derivatives segment offers valuable insights into potential directional bets, making it a key stock to watch in the private sector banking space over the coming weeks.

Only Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Start Today