Robust Call Option Activity Highlights Investor Optimism
Data from the derivatives market reveals that Bandhan Bank’s call options with a strike price of ₹190 expiring on 30 March 2026 have witnessed significant trading interest. A total of 2,718 contracts changed hands, generating a turnover of ₹60.37 crores. The open interest stands at 1,130 contracts, indicating sustained positions and confidence in the stock’s upward trajectory.
The underlying stock closed at ₹187.17, just 2.95% shy of its 52-week high of ₹192.48, underscoring the proximity to a key resistance level. This near-term strike price selection suggests that traders are anticipating a breakout above the ₹190 mark within the next month.
Price Momentum and Technical Strength Support Bullish Positioning
Bandhan Bank has been on a consistent uptrend, gaining 10.32% over the last five trading sessions. The stock outperformed its sector by 2.17% on the latest trading day, closing with a 2.76% gain. Intraday, it touched a high of ₹188.40, reflecting strong buying interest.
Technically, the stock is trading above all major moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a robust bullish trend. Such alignment of moving averages often attracts momentum traders and institutional investors, further reinforcing the positive outlook.
However, it is noteworthy that delivery volumes have declined by 21.59% compared to the five-day average, which may indicate some caution among long-term holders or a shift towards short-term speculative activity.
Our latest monthly pick, this Small Cap from Oil Exploration/Refineries, is showing strong performance since announcement! See why our Investment Committee chose it after screening 50+ candidates.
- - Investment Committee approved
- - 50+ candidates screened
- - Strong post-announcement performance
Fundamental and Market Context
Bandhan Bank operates in the private sector banking industry and currently holds a market capitalisation of approximately ₹29,481 crores, categorising it as a small-cap stock. The company’s Mojo Score has improved to 51.0, with a recent upgrade in its Mojo Grade from Sell to Hold on 4 February 2026, reflecting a more neutral stance by analysts.
Despite the upgrade, the stock’s Market Cap Grade remains modest at 3, indicating room for growth but also some caution due to size and liquidity considerations. The stock’s liquidity is adequate for sizeable trades, with a 2% threshold of the five-day average traded value allowing for transactions up to ₹3.34 crores without significant market impact.
Expiry Patterns and Strike Price Selection
The expiry date of 30 March 2026 is attracting concentrated call option activity, which is typical as traders position themselves ahead of quarterly results or macroeconomic events. The ₹190 strike price is particularly significant as it lies just above the current market price, representing a near-the-money call option that balances risk and reward for bullish investors.
Open interest data suggests that many traders are holding onto these positions, anticipating a rally that could push the stock beyond this strike price. This is further supported by the stock’s recent outperformance relative to the Sensex, which gained a modest 0.24% on the same day, and the sector’s flat performance.
Risks and Considerations
While the technical and options market signals are positive, investors should remain mindful of potential volatility. The decline in delivery volumes may indicate some profit-taking or reduced conviction among long-term investors. Additionally, the stock remains a small-cap entity, which can be more susceptible to market swings and liquidity constraints.
Furthermore, the upgrade to a Hold rating suggests that while the stock has stabilised, it may not yet be poised for a strong buy recommendation. Investors should weigh these factors carefully and consider their risk tolerance before increasing exposure.
Holding Bandhan Bank Ltd. from Private Sector Bank? See if there's a smarter choice! SwitchER compares it with peers and suggests superior options across market caps and sectors!
- - Peer comparison ready
- - Superior options identified
- - Cross market-cap analysis
Outlook and Investor Takeaway
Bandhan Bank’s recent surge in call option activity, combined with its strong price momentum and technical positioning, indicates a growing bullish consensus among traders. The proximity to the 52-week high and the concentration of open interest at the ₹190 strike price suggest that the market is pricing in further gains over the coming weeks.
However, the Hold rating and moderate Mojo Score imply that investors should maintain a balanced approach, monitoring key support levels and broader market conditions. The stock’s small-cap status and fluctuating delivery volumes warrant caution, especially for those with lower risk appetite.
For investors seeking exposure to the private sector banking space, Bandhan Bank offers an intriguing blend of momentum and value, but it is advisable to consider peer comparisons and alternative options within the sector to optimise portfolio performance.
Summary of Key Metrics:
- Current Price: ₹187.17
- 52-Week High: ₹192.48 (2.95% away)
- Call Option Strike Price: ₹190 (Expiry 30 Mar 2026)
- Number of Contracts Traded: 2,718
- Turnover in Call Options: ₹60.37 crores
- Open Interest: 1,130 contracts
- Mojo Score: 51.0 (Hold, upgraded from Sell on 4 Feb 2026)
- Market Cap: ₹29,481 crores (Small Cap)
- 5-Day Price Gain: 10.32%
- Sector Outperformance: +2.17% (vs sector)
Investors should continue to track Bandhan Bank’s price action and options market dynamics closely as expiry approaches, as these will provide further clues on the stock’s near-term direction.
Limited Period Only. Start at Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Get 71% Off →
