Bank Of India Sees Sharp Open Interest Surge Signalling Bullish Market Positioning

Open Interest and Volume Dynamics

On 18 Feb 2026, Bank Of India’s open interest in futures and options contracts rose sharply by 2,166 contracts, a 10.43% increase from the previous day’s 20,772 contracts to 22,938. This uptick in OI is accompanied by a robust volume of 15,615 contracts traded, reflecting heightened trader activity and confidence in the stock’s near-term prospects.

The futures segment alone accounted for a value of approximately ₹30,096.65 lakhs, while the options segment’s notional value stood at an impressive ₹11,150.49 crores, culminating in a total derivatives market value of ₹32,041.16 lakhs. Such liquidity levels underscore the stock’s attractiveness for both hedging and speculative strategies.

Price Action and Technical Strength

Bank Of India’s price performance has been robust, with the stock gaining 6.4% over the past three consecutive trading sessions. The recent rally culminated in a fresh 52-week high of ₹172.9, marginally above the current underlying value of ₹172. The stock’s price is trading comfortably above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a strong bullish trend and positive investor sentiment.

Notably, the stock’s 1-day return of 1.12% outpaced the public sector banking sector’s gain of 1.01% and significantly outperformed the Sensex, which declined by 0.17% on the same day. This relative strength highlights Bank Of India’s leadership within its sector amid broader market volatility.

Investor Participation and Delivery Volumes

Investor participation has surged, as evidenced by the delivery volume of 50.05 lakh shares on 17 Feb 2026, which represents a 64.25% increase compared to the five-day average delivery volume. This rise in delivery volumes indicates genuine accumulation by long-term investors rather than short-term speculative trading, reinforcing the stock’s fundamental appeal.

Liquidity remains ample, with the stock’s average traded value supporting trade sizes up to ₹3.19 crores based on 2% of the five-day average traded value. This ensures that institutional investors can enter or exit positions without significant market impact, further enhancing the stock’s attractiveness.

Market Positioning and Directional Bets

The surge in open interest alongside rising prices and volumes suggests that market participants are positioning for further upside in Bank Of India. The increase in OI by over 10% indicates fresh long positions being established rather than short covering, which typically reduces OI. This is corroborated by the stock’s strong technical setup and improving fundamentals.

Given the stock’s current momentum and the public sector banking sector’s steady recovery, traders appear to be betting on sustained earnings growth and improved asset quality. Bank Of India’s mid-cap market capitalisation of ₹78,169 crores and its recent upgrade in Mojo Grade from Buy to Strong Buy (Mojo Score 81.0 as of 2 Feb 2026) further validate the positive outlook.

Additionally, the stock’s Market Cap Grade of 2 indicates a mid-cap status with significant room for appreciation relative to larger peers. The combination of technical strength, rising investor participation, and favourable derivatives activity positions Bank Of India as a compelling candidate for bullish strategies in the near term.

Sector and Benchmark Comparison

While the broader Sensex declined marginally by 0.17% on 18 Feb 2026, Bank Of India’s outperformance reflects its resilience amid mixed market conditions. The public sector banking sector’s modest gain of 1.01% was matched and slightly exceeded by Bank Of India’s 1.12% daily return, underscoring its relative strength.

This divergence is significant given the sector’s sensitivity to macroeconomic factors such as interest rate movements and credit growth. Bank Of India’s ability to sustain gains and attract increased open interest suggests confidence in its management’s strategy and asset quality improvements.

Outlook and Investment Considerations

Bank Of India’s recent derivatives activity and price action suggest a bullish consensus among traders and investors. The stock’s upgrade to a Strong Buy rating by MarketsMOJO, supported by an 81.0 Mojo Score, reflects improved fundamentals and technical strength. Investors should note the stock’s consistent gains over the past three days and its ability to maintain levels above key moving averages, which often serve as dynamic support zones.

However, as with any mid-cap banking stock, risks remain from macroeconomic headwinds such as interest rate volatility, credit growth uncertainties, and regulatory changes. Market participants should monitor open interest trends closely, as a sudden reversal or decline in OI could signal profit-taking or a shift in sentiment.

Overall, Bank Of India’s current market positioning, combined with rising investor participation and strong derivatives market activity, makes it a noteworthy candidate for investors seeking exposure to the public sector banking sector’s recovery story.

Summary

In summary, Bank Of India’s derivatives market has experienced a significant open interest surge of 10.43%, accompanied by rising volumes and a fresh 52-week high price. The stock’s technical indicators and delivery volumes point to genuine accumulation and bullish sentiment. With a Strong Buy Mojo Grade and solid market liquidity, Bank Of India stands out as a promising investment within the public sector banking space, supported by both fundamental and technical factors.

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