ICICI Bank Sees Heavy Call Option Activity Amid Bearish Price Momentum

Recent Price Performance and Market Context

ICICI Bank’s stock price has been on a declining trajectory over the past three sessions, registering a cumulative fall of 4.75%. On 19 January 2026, the stock closed at ₹1,370.6, down 2.90% on the day, underperforming its sector by 2.46% and the broader Sensex by 2.38%. The intraday low touched ₹1,364.3, marking a 3.3% dip from the previous close. This bearish momentum is further underscored by the stock trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — indicating sustained selling pressure and a lack of near-term technical support.

Despite this, investor participation remains robust, with delivery volumes on 16 January reaching 89.12 lakh shares, marginally above the five-day average. Liquidity remains ample, supporting sizeable trades with an average daily traded value sufficient to accommodate transactions worth approximately ₹37.75 crore.

Call Option Activity: Strike Price and Expiry Insights

The most active call option for ICICI Bank is the January 27, 2026 expiry contract with a strike price of ₹1,400. This option saw 10,453 contracts traded, generating a turnover of ₹469.76 lakh. Open interest stands at 7,658 contracts, reflecting considerable investor interest and positioning ahead of expiry.

The ₹1,400 strike is notably above the current underlying price, suggesting a bullish bias among option traders. However, the stock’s recent weakness and failure to breach this level imply that these positions may be speculative or hedging in nature. The high open interest at this strike price could also indicate a significant number of traders expecting a rebound or using these calls as part of complex option strategies such as spreads or collars.

Mojo Score and Analyst Ratings

ICICI Bank holds a Mojo Score of 57.0, categorised as a ‘Hold’ grade as of 5 January 2026, an upgrade from a previous ‘Sell’ rating. This reflects a cautious stance by analysts, recognising the bank’s large-cap status with a market capitalisation exceeding ₹10 lakh crore, but tempered by recent price weakness and sector headwinds. The market cap grade is low at 1, indicating that despite its size, the stock’s valuation or momentum metrics may not be compelling at present.

Investor Sentiment and Strategic Positioning

The divergence between the stock’s bearish price action and the bullish call option interest suggests a nuanced market outlook. Traders may be anticipating a short-term recovery or a technical bounce as the expiry date approaches. The strike price of ₹1,400, approximately 2.2% above the current market price, represents a key psychological and technical level for the stock.

Open interest accumulation at this strike could also be indicative of institutional players deploying hedging strategies to protect existing long positions or to speculate on volatility. Given the stock’s underperformance relative to its sector and the Sensex, these call options might serve as a cost-effective way to gain upside exposure without outright stock purchases.

Sector and Market Comparison

Within the private sector banking space, ICICI Bank’s recent performance has lagged behind peers, with the sector index declining by only 0.87% on the same day. This relative underperformance may be attributed to broader macroeconomic concerns, regulatory developments, or company-specific factors impacting investor confidence.

Nevertheless, the bank’s large-cap status and extensive retail and corporate franchise continue to attract significant trading volumes and investor interest. The active options market reflects this, with traders keenly monitoring price levels and expiry dynamics for potential trading opportunities.

Outlook and Investor Considerations

For investors, the current scenario presents a mixed picture. The stock’s technical weakness and recent losses caution against aggressive long positions. However, the elevated call option activity at the ₹1,400 strike price signals that some market participants are positioning for a rebound or volatility-driven gains.

Given the bank’s fundamental strength and large market capitalisation, a recovery is plausible if broader market conditions improve or if company-specific catalysts emerge. Investors should monitor price action around key moving averages and expiry dates closely, as these will likely influence near-term momentum.

Risk management remains paramount, especially considering the stock’s recent underperformance and the potential for continued volatility in the banking sector. Utilising options strategies may offer a balanced approach to participation, allowing for defined risk while maintaining upside potential.

Summary

ICICI Bank Ltd. is currently navigating a challenging phase marked by declining share prices and underperformance relative to its sector. Nonetheless, the surge in call option trading at the ₹1,400 strike price ahead of the 27 January expiry highlights a segment of the market anticipating a turnaround or seeking to capitalise on volatility. The bank’s upgraded Mojo Grade to ‘Hold’ reflects cautious optimism amid mixed technical signals. Investors should weigh these factors carefully, considering both the risks and opportunities inherent in the current market environment.

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