Open Interest and Volume Dynamics
On 18 Feb 2026, Bank Of India’s open interest in derivatives rose sharply by 2,319 contracts, an 11.16% increase from the previous day’s 20,772 to 23,091. This notable expansion in OI was accompanied by a futures volume of 17,194 contracts, underscoring active trading interest. The combined futures and options value stood at ₹36,559.5 lakhs, with futures contributing ₹34,460.4 lakhs and options ₹12,132.2 crores, indicating substantial liquidity and market participation.
The underlying stock price has been on an upward trajectory, gaining 6.49% over the past three consecutive sessions, outperforming the sector’s 1.11% and the flat Sensex on the same day. Bank Of India’s price currently trades above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – reinforcing the bullish technical setup.
Investor Participation and Delivery Volumes
Investor engagement has intensified, with delivery volumes on 17 Feb reaching 50.05 lakh shares, a 64.25% increase compared to the five-day average. This surge in delivery volume suggests genuine accumulation rather than speculative trading, a positive sign for sustained price momentum. The stock’s liquidity profile remains healthy, supporting trade sizes up to ₹3.19 crores based on 2% of the five-day average traded value, facilitating institutional and retail participation alike.
Market Positioning and Directional Bets
The sharp rise in open interest alongside increasing volumes points to fresh long positions being established by market participants. Given the stock’s recent breakout to a new 52-week high and strong technical indicators, the derivatives market appears to be pricing in further upside potential. The increase in OI by over 11% is a clear signal of growing conviction among traders, possibly anticipating positive triggers such as improved asset quality, better credit growth, or favourable policy developments in the public sector banking space.
Moreover, the futures value of ₹34,460.4 lakhs reflects significant capital allocation towards Bank Of India contracts, suggesting that institutional players are actively positioning for a sustained rally. Options market data, with an options value exceeding ₹12,132 crores, also indicates heightened hedging and speculative activity, which often precedes directional moves in the underlying stock.
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Mojo Score Upgrade and Market Sentiment
Reflecting the positive momentum, Bank Of India’s Mojo Score was upgraded from 70 (Buy) to 81 (Strong Buy) on 2 Feb 2026. This upgrade underscores improved fundamentals and technical strength, positioning the stock favourably within the public sector banking universe. The company’s market capitalisation stands at ₹78,169 crores, categorising it as a mid-cap stock with ample room for growth.
The stock’s day-on-day price change of 1.17% on 18 Feb 2026, slightly outperforming the sector’s 1.11%, further validates the bullish sentiment. The consistent gains over the last three sessions, combined with rising open interest and delivery volumes, suggest that investors are increasingly confident in Bank Of India’s near-term prospects.
Technical and Fundamental Outlook
Technically, the stock’s position above all major moving averages signals strong upward momentum and limited resistance in the immediate term. The new 52-week high at ₹172.9 is a psychological trigger that often attracts momentum traders and institutional buyers. Fundamentally, the public sector banking sector is expected to benefit from improving credit demand, government reforms, and better asset quality, which could translate into stronger earnings growth for Bank Of India.
However, investors should remain mindful of sector-specific risks such as regulatory changes, macroeconomic headwinds, and global financial market volatility that could impact sentiment. The current surge in open interest and volume, while bullish, also warrants close monitoring for any sudden unwinding or profit-booking that could lead to short-term volatility.
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Implications for Investors and Traders
The current derivatives market activity in Bank Of India suggests that investors are positioning for a continuation of the recent rally. The 11.16% increase in open interest, coupled with rising volumes and delivery participation, indicates a strong conviction in the stock’s upside potential. Traders may consider this a favourable environment to initiate or add to long positions, particularly given the stock’s technical strength and positive fundamental outlook.
Institutional investors appear to be leading the charge, as evidenced by the sizeable futures and options values, which provide ample liquidity for large trades. Retail investors should also note the improved Mojo Grade of Strong Buy, which reflects a consensus of positive factors including earnings prospects, valuation, and price momentum.
Nevertheless, prudent risk management remains essential. Market participants should watch for any signs of profit-taking or shifts in open interest that could signal a change in trend. Monitoring sector developments and macroeconomic indicators will also be critical to navigating the evolving landscape for public sector banks.
Conclusion
Bank Of India’s recent surge in open interest and volume in the derivatives market, combined with its new 52-week high and upgraded Mojo Score, paints a compelling picture of bullish market positioning. The stock’s strong technicals and improving fundamentals make it a standout candidate within the public sector banking sector for investors seeking growth opportunities. While risks remain, the current market signals suggest that Bank Of India is well poised for further gains in the near term.
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