Bandhan Bank Sees Sharp Open Interest Surge Signalling Renewed Market Optimism

Open Interest and Volume Dynamics

On 26 Feb 2026, Bandhan Bank’s open interest in derivatives rose sharply by 3,529 contracts, marking a 12.26% increase from the previous day’s 28,781 to 32,310. This uptick in OI was accompanied by a volume of 31,508 contracts, indicating robust trading activity. The futures segment alone accounted for a value of approximately ₹51,903 lakhs, while options contributed a staggering ₹16,740 crores, culminating in a total derivatives value of ₹56,858 lakhs.

Such a pronounced increase in open interest, alongside strong volume, typically reflects fresh positions being established rather than existing ones being squared off. This suggests that market participants are actively positioning themselves, possibly anticipating further price movements in the underlying stock.

Price Performance and Technical Context

Bandhan Bank’s underlying share price closed at ₹185, just 3.69% shy of its 52-week high of ₹192.48. The stock has outperformed its sector by 1.85% on the day and has recorded a consecutive five-day gain, delivering a cumulative return of 9.54% over this period. Intraday, the stock touched a high of ₹190.23, up 4.02% from the previous close.

Technically, Bandhan Bank is trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a strong uptrend. However, delivery volumes have declined by 21.59% compared to the five-day average, indicating that while short-term trading interest is high, longer-term investor participation may be moderating.

Market Capitalisation and Analyst Ratings

With a market capitalisation of ₹30,157 crores, Bandhan Bank is classified as a small-cap stock within the private sector banking industry. The company’s Mojo Score currently stands at 51.0, reflecting a Hold rating, an upgrade from a Sell rating issued on 4 Feb 2026. This shift in analyst sentiment underscores a cautious optimism about the stock’s near-term prospects.

Interpreting the Open Interest Surge

The 12.26% rise in open interest, coupled with strong volume, suggests that traders are increasingly bullish on Bandhan Bank’s near-term outlook. This is further supported by the stock’s outperformance relative to its sector and the broader Sensex, which declined by 0.18% on the same day. The sector itself was down 0.36%, highlighting Bandhan Bank’s relative strength.

Open interest growth in derivatives often signals that new money is flowing into the stock, with participants potentially taking long positions in futures or call options. The substantial option value of over ₹16,740 crores indicates active hedging and speculative activity, which could amplify price movements in either direction depending on market catalysts.

Volume Patterns and Investor Behaviour

Despite the surge in derivatives activity, the delivery volume on 25 Feb was 28.05 lakh shares, down 21.59% from the five-day average. This divergence suggests that while short-term traders and speculators are active, long-term investors may be adopting a wait-and-watch stance. The stock’s liquidity remains adequate, with a trade size capacity of ₹3.34 crores based on 2% of the five-day average traded value, ensuring smooth execution for institutional and retail participants alike.

Potential Directional Bets and Market Positioning

The combination of rising open interest, strong volume, and positive price momentum points to a growing consensus on bullish prospects for Bandhan Bank. Market participants may be positioning for further upside, possibly driven by expectations of improved earnings, favourable macroeconomic conditions, or sectoral tailwinds in private sector banking.

However, the Hold rating and moderate Mojo Score of 51.0 indicate that caution remains warranted. Investors should monitor key support levels and broader market trends, as any adverse developments could trigger profit-taking or a reversal in sentiment.

Conclusion: A Stock in Focus Amid Derivatives Activity

Bandhan Bank Ltd.’s recent surge in open interest and volume in the derivatives market, combined with its strong price performance and technical positioning, highlights the stock as a focal point for traders and investors. While the upgraded Hold rating reflects tempered optimism, the underlying data suggests that market participants are increasingly confident in the stock’s potential for further gains.

Investors should continue to monitor open interest trends, volume patterns, and price action closely, as these indicators provide valuable insights into market sentiment and positioning. Given the stock’s liquidity and relative strength against sector and benchmark indices, Bandhan Bank remains an important name to watch in the private sector banking space.

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