Open Interest and Volume Dynamics
The latest data reveals that open interest (OI) in Bank Of India’s futures and options contracts increased by 2,242 contracts, a 10.79% rise from the previous figure of 20,772 to 23,014. This notable expansion in OI coincided with a daily traded volume of 18,602 contracts, underscoring active market participation. The futures segment alone accounted for a value of approximately ₹37,781.85 lakhs, while the options segment's notional value stood at an impressive ₹13,072.24 crores, culminating in a total derivatives value of ₹40,038.46 lakhs.
The surge in OI alongside elevated volume typically indicates fresh positions being established rather than existing ones being squared off. This pattern suggests that traders are increasingly positioning themselves for a directional move, likely bullish given the stock’s recent price action and technical indicators.
Price Performance and Technical Strength
Bank Of India has been on a steady upward trajectory, gaining 6.47% over the past three consecutive trading sessions. The stock’s current price of ₹172 is comfortably above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling strong technical momentum. This alignment of moving averages often attracts momentum traders and institutional investors, reinforcing the bullish sentiment.
Additionally, the stock’s delivery volume on 17 Feb surged to 50.05 lakh shares, marking a 64.25% increase compared to the five-day average delivery volume. This rise in delivery volume indicates genuine investor interest and accumulation rather than speculative intraday trading.
Market Context and Sector Comparison
On the day of analysis, Bank Of India outperformed its sector and benchmark indices, delivering a 1.32% gain compared to the public sector bank sector’s 0.84% rise and the Sensex’s marginal decline of 0.02%. This relative outperformance highlights the stock’s growing appeal amid a mixed market environment.
With a market capitalisation of ₹78,169 crore, Bank Of India is classified as a mid-cap stock within the public sector banking industry. Its liquidity profile is robust, supporting trade sizes up to ₹3.19 crore based on 2% of the five-day average traded value, making it accessible for both retail and institutional investors.
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Investor Positioning and Market Sentiment
The increase in open interest coupled with rising prices and volume suggests that market participants are adopting a bullish stance on Bank Of India. The derivatives market activity points towards fresh long positions being initiated, reflecting confidence in the stock’s near-term upside potential.
Such positioning is often driven by expectations of favourable quarterly results, improved asset quality, or positive macroeconomic developments impacting the banking sector. Given Bank Of India’s recent upgrade in Mojo Grade from Buy to Strong Buy on 2 Feb 2026, with a Mojo Score of 81.0, investor sentiment appears increasingly optimistic.
Moreover, the stock’s consistent outperformance relative to its sector peers and the broader market reinforces the view that it is attracting quality buying interest. The combination of technical strength, improving fundamentals, and active derivatives positioning creates a compelling case for continued upside.
Risk Considerations and Market Volatility
While the current momentum is encouraging, investors should remain mindful of potential volatility inherent in banking stocks, especially public sector banks which can be sensitive to regulatory changes, credit costs, and macroeconomic shifts. The derivatives market’s elevated open interest can amplify price swings, necessitating prudent risk management.
Additionally, the stock’s market cap grade of 2 indicates moderate size and liquidity, which may lead to sharper price movements during periods of market stress or profit booking. Investors should monitor key support levels and broader sector trends to gauge sustainability of the rally.
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Outlook and Strategic Implications
Given the strong derivatives activity, technical momentum, and positive fundamental signals, Bank Of India is well positioned for further gains in the near term. The stock’s upgrade to a Strong Buy rating by MarketsMOJO reflects improved quality metrics and favourable market positioning.
Investors looking to capitalise on this trend should consider the stock’s liquidity and volatility profile, aligning their exposure with risk tolerance and investment horizon. The rising open interest and volume patterns suggest that institutional players are increasingly confident, which could translate into sustained price appreciation.
In summary, Bank Of India’s recent surge in open interest and volume, combined with its technical and fundamental strength, marks it as a key stock to watch within the public sector banking sector. Market participants should monitor ongoing derivatives activity and price action closely to gauge evolving sentiment and potential breakout opportunities.
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