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

Open Interest and Volume Dynamics

On 18 Feb 2026, Bank Of India’s open interest in derivatives rose sharply by 2,203 contracts, a 10.61% increase from the previous day’s 20,772 to 22,975. This notable expansion in OI was accompanied by a futures volume of 19,662 contracts, underscoring active trading interest. The combined futures and options value stood at approximately ₹13,805 crores, with futures alone accounting for ₹400.48 crores, indicating substantial capital flow into the stock’s derivatives market.

The rising OI alongside strong volume typically suggests fresh positions are being initiated rather than closed out, often interpreted as a confirmation of the prevailing trend. In this case, the trend is decidedly upward, with the stock outperforming its sector by 0.31% and the broader Sensex by 1.12% on the day.

Price and Technical Strength

Bank Of India’s price action has been impressive, with the stock gaining 6.66% over the last three consecutive trading sessions. It is currently trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — a technical hallmark of sustained strength. The new 52-week high of ₹172.9 further cements the bullish technical setup.

Investor participation has also surged, with delivery volumes on 17 Feb reaching 50.05 lakh shares, a 64.25% increase over the five-day average. This rise in delivery volume indicates genuine accumulation rather than speculative intraday trading, reinforcing the conviction behind the price rally.

Market Positioning and Directional Bets

The open interest increase in Bank Of India’s derivatives points to a growing number of traders taking directional bets, predominantly on the upside. The futures market’s substantial value and rising volumes suggest institutional and retail investors alike are positioning for further gains. Given the stock’s strong fundamentals and improving macroeconomic backdrop for public sector banks, these bets appear well-founded.

Moreover, the stock’s Mojo Score of 81.0 and an upgraded Mojo Grade to Strong Buy as of 2 Feb 2026, from a previous Buy rating, reflect enhanced confidence in its earnings growth and risk-reward profile. The market cap of ₹78,169 crores places Bank Of India comfortably in the mid-cap segment, offering a blend of growth potential and liquidity.

Liquidity and Trading Viability

Liquidity remains a key consideration for active traders and institutional participants. Bank Of India’s average traded value over five days supports a trade size of approximately ₹3.19 crores based on 2% of average daily volume, ensuring that sizeable positions can be entered or exited without significant market impact. This liquidity profile complements the stock’s rising open interest and volume, making it an attractive candidate for derivatives trading strategies.

Sector and Benchmark Comparison

Within the public sector banking sector, Bank Of India has outperformed peers with a 1.32% gain on the day, compared to the sector’s 1.15% and the Sensex’s modest 0.20% rise. This relative strength highlights the stock’s leadership and investor preference amid a broader banking rally. The sector’s improving asset quality and credit growth outlook provide a supportive backdrop for sustained momentum in Bank Of India’s shares.

Implications for Investors

The surge in open interest combined with strong price action and rising delivery volumes suggests that market participants are increasingly confident in Bank Of India’s near-term prospects. Investors should note the upgraded Mojo Grade to Strong Buy, which reflects improved fundamentals and positive earnings revisions. However, as with all mid-cap stocks, volatility can be elevated, and prudent risk management remains essential.

For those considering exposure, the current technical setup and market positioning indicate a favourable risk-reward scenario, especially if the stock sustains above key moving averages and the ₹170 psychological level. Monitoring open interest trends and volume patterns in the derivatives market will provide ongoing insight into evolving market sentiment.

Outlook and Conclusion

Bank Of India’s recent open interest surge in derivatives is a clear signal of growing bullish sentiment and increased market participation. The stock’s technical strength, combined with improving fundamentals and a strong Mojo Score, positions it well for further upside potential. Investors should watch for continued volume and OI expansion as confirmation of sustained momentum.

While the public sector banking sector faces challenges such as asset quality pressures and regulatory changes, Bank Of India’s improving credit metrics and market positioning provide a solid foundation for growth. The stock’s liquidity and active derivatives market make it an appealing option for both long-term investors and traders seeking to capitalise on directional moves.

In summary, the confluence of rising open interest, robust volume, and positive price action suggests that Bank Of India is attracting fresh capital and bullish bets, signalling a favourable environment for investors looking to participate in the public sector banking recovery.

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