Call Option Activity Highlights
On 25 February 2026, HDFC Bank Ltd. (NSE: HDFCBANK) recorded a robust call option turnover of ₹30.14 crores, driven by 2,810 contracts traded at the ₹920 strike price with expiry set for 30 March 2026. The open interest at this strike stands at 5,920 contracts, indicating sustained interest from market participants anticipating a potential upward move in the stock price over the coming month.
The underlying stock closed at ₹912.35, just shy of the ₹920 strike, suggesting that traders are positioning for a moderate rally. This level is psychologically significant, as it represents a near-term resistance point that, if breached, could trigger further bullish momentum in the options market.
Technical and Market Context
Despite the heightened call option activity, HDFC Bank’s technical indicators paint a cautious picture. The stock is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling a bearish trend across multiple timeframes. This technical weakness contrasts with the bullish sentiment implied by the call option volumes, suggesting a divergence between derivatives positioning and spot market realities.
On 24 February 2026, delivery volumes surged to 1.77 crore shares, marking a 56.08% increase over the five-day average. This rise in investor participation could indicate accumulation at current levels, potentially supporting a near-term rebound. However, the stock’s 1-day return of 0.20% lagged behind the Sensex’s 0.57% and the Private Sector Bank sector’s 0.40%, reflecting relative underperformance.
Liquidity remains adequate, with the stock capable of handling trade sizes up to ₹43.14 crores based on 2% of the five-day average traded value, ensuring that institutional investors can execute sizeable transactions without significant market impact.
Our latest monthly pick, this Small Cap from Oil Exploration/Refineries, is showing strong performance since announcement! See why our Investment Committee chose it after screening 50+ candidates.
- - Investment Committee approved
- - 50+ candidates screened
- - Strong post-announcement performance
Mojo Score and Analyst Ratings
HDFC Bank currently holds a Mojo Score of 48.0, categorised as a 'Sell' grade by MarketsMOJO, reflecting a downgrade from its previous 'Hold' rating on 9 February 2026. The downgrade stems from deteriorating technical trends and cautious outlooks on near-term earnings growth amid a challenging macroeconomic environment.
The bank’s market capitalisation stands at a substantial ₹14,04,056.05 crores, placing it firmly in the large-cap segment. However, its Market Cap Grade is rated 1, indicating limited upside potential relative to peers in the private sector banking space.
Expiry Patterns and Strike Price Concentration
The concentration of call option activity at the ₹920 strike price for the 30 March 2026 expiry suggests that traders are targeting a roughly 0.8% increase from the current spot price within the next month. This strike price is the most actively traded, with open interest levels supporting the view that market participants expect the stock to test or surpass this level before expiry.
Such positioning is typical of investors seeking leveraged exposure to potential upside while limiting downside risk to the premium paid. The relatively high open interest also implies that a significant number of contracts remain outstanding, which could lead to increased volatility as expiry approaches.
Sector and Benchmark Comparison
In comparison to the broader Private Sector Bank sector, which gained 0.40% on the day, HDFC Bank’s modest 0.20% increase indicates a cautious stance among investors. The Sensex outperformed both, rising 0.57%, underscoring the selective nature of buying interest in banking stocks amid mixed economic signals.
Given the bank’s underperformance relative to sector and benchmark indices, the elevated call option activity may reflect speculative positioning rather than broad-based confidence in the stock’s immediate prospects.
Considering HDFC Bank Ltd.? Wait! SwitchER has found potentially better options in Private Sector Bank and beyond. Compare this large-cap with top-rated alternatives now!
- - Better options discovered
- - Private Sector Bank + beyond scope
- - Top-rated alternatives ready
Investor Implications and Outlook
For investors, the surge in call option activity at the ₹920 strike price signals a cautiously optimistic view among traders, betting on a modest recovery in HDFC Bank’s share price over the next month. However, the stock’s persistent weakness below key moving averages and its recent downgrade to a 'Sell' rating counsel prudence.
Market participants should closely monitor price action around the ₹920 level, as a decisive breakout could validate the bullish options positioning and attract fresh buying interest. Conversely, failure to breach this resistance may result in profit-taking and increased volatility as expiry nears.
Given the bank’s large-cap status and liquidity, it remains a key bellwether for the private banking sector, but investors may wish to consider alternative opportunities with stronger technical and fundamental profiles.
Summary
In summary, HDFC Bank Ltd. is currently the focal point of call option trading activity, with significant volumes at the ₹920 strike price expiring in late March 2026. While this suggests bullish sentiment in the derivatives market, the underlying stock’s technical indicators and recent rating downgrade temper enthusiasm. Investors should weigh these factors carefully and consider broader sector dynamics before making allocation decisions.
Limited Period Only. Start at Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Get 71% Off →
