Open Interest and Volume Dynamics
On 19 Jan 2026, Bank Of India’s open interest (OI) in derivatives rose sharply by 2,921 contracts, a 13.7% increase from the previous 21,319 to 24,240. This surge in OI was accompanied by a robust volume of 50,022 contracts, indicating strong participation from market players. The futures segment alone accounted for a value of approximately ₹71,453 lakhs, while the options segment’s notional value stood at an impressive ₹35,398.6 crores, culminating in a total derivatives value of ₹78,533.6 lakhs.
This spike in open interest, alongside elevated volumes, typically signals fresh capital entering the market rather than mere position squaring. Such a pattern often precedes sustained price moves, as traders establish new directional bets or hedge existing exposures.
Price Performance and Technical Strength
Bank Of India’s underlying stock price has mirrored this positive derivatives activity with a strong performance. The stock hit a new 52-week high of ₹164.34, marking a 4.45% intraday gain and outperforming its sector by 3.16% on the day. Over the past four consecutive trading sessions, the stock has delivered a cumulative return of 10.5%, reflecting sustained buying interest.
Technically, the stock is trading above all major moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — underscoring a bullish trend across multiple timeframes. This alignment of moving averages often attracts momentum traders and institutional investors, further reinforcing upward price momentum.
Investor Participation and Liquidity
Investor engagement has also intensified, with delivery volumes on 16 Jan reaching 66.76 lakh shares, an 82.5% increase compared to the five-day average. This rise in delivery volume indicates genuine accumulation rather than speculative intraday trading. The stock’s liquidity remains robust, supporting trade sizes up to ₹3.46 crore based on 2% of the five-day average traded value, making it accessible for both retail and institutional investors.
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Market Positioning and Directional Bets
The notable increase in open interest alongside rising prices and volumes suggests that market participants are positioning for further upside in Bank Of India. The 13.7% jump in OI indicates fresh long positions being established rather than short covering, as the stock’s price has concurrently advanced by 3.56% on the day.
Such a combination typically reflects bullish sentiment, with traders anticipating continued strength driven by improving fundamentals or positive sectoral trends. Given Bank Of India’s mid-cap status with a market capitalisation of ₹72,865 crore, it remains an attractive pick for investors seeking exposure to the public sector banking segment.
Moreover, the stock’s Mojo Score currently stands at 78.0, with a Mojo Grade of Buy, recently downgraded from Strong Buy on 23 Oct 2025. This adjustment reflects a more measured optimism, balancing strong technicals and improving fundamentals against potential macroeconomic headwinds.
Sector and Benchmark Comparison
Bank Of India’s outperformance is particularly notable against its sector and benchmark indices. While the stock gained 2.61% in a single day, the public sector banking sector declined by 0.70%, and the Sensex slipped 0.31%. This relative strength highlights the stock’s leadership within its peer group and suggests selective buying interest amid broader market caution.
Such divergence often attracts momentum investors and can lead to further price appreciation if the stock continues to deliver positive earnings or capitalises on sector tailwinds such as credit growth or asset quality improvement.
Valuation and Quality Metrics
Bank Of India’s market cap grade is rated 2, indicating a mid-cap classification with moderate liquidity and institutional interest. The stock’s rising delivery volumes and sustained price gains point to improving investor confidence. However, investors should remain mindful of valuation levels relative to historical averages and peer banks to avoid overextension.
Financially, the bank has demonstrated steady progress in asset quality and profitability metrics, supporting the positive market sentiment. The recent Mojo Grade downgrade from Strong Buy to Buy suggests a cautious approach, factoring in potential risks such as interest rate fluctuations and regulatory changes.
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Implications for Investors
The surge in open interest and volume, combined with strong price action and technical indicators, positions Bank Of India as a compelling candidate for investors seeking exposure to the public sector banking sector’s recovery. The stock’s liquidity and rising delivery volumes further enhance its attractiveness for both short-term traders and long-term investors.
However, investors should monitor the evolving macroeconomic environment, including interest rate trends and credit demand, which could impact the bank’s performance. The recent downgrade in Mojo Grade advises a balanced approach, recognising the stock’s strengths while remaining vigilant to potential risks.
Overall, the current market positioning suggests that participants are increasingly confident in Bank Of India’s near-term prospects, with fresh long positions signalling expectations of continued upward momentum.
Conclusion
Bank Of India’s derivatives market activity reveals a clear shift towards bullish positioning, supported by a 13.7% rise in open interest and strong volume participation. The stock’s new 52-week high, outperformance relative to sector and benchmark indices, and positive technical setup underscore growing investor confidence. While the Mojo Grade adjustment to Buy reflects a tempered outlook, the overall data points to sustained interest and potential for further gains in this mid-cap public sector bank.
Investors should continue to track open interest trends and volume patterns as leading indicators of market sentiment, while also considering fundamental developments and sector dynamics to make informed decisions.
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