ICICI Bank Sees Heavy Call Option Activity Amid Mixed Technical Signals

Robust Call Option Trading Highlights Investor Sentiment

The most active call options for ICICI Bank Ltd. are concentrated at the ₹1,360 strike price, with 6,319 contracts traded on 2 February 2026. This activity generated a turnover of ₹668.36 lakhs, underscoring strong investor interest in bullish bets ahead of the 24 February expiry. Open interest remains elevated at 6,057 contracts, suggesting sustained positioning rather than short-term speculative trades.

The underlying stock price stood at ₹1,342.40 on the day, just below the key strike price, indicating that traders are anticipating a rally above this level within the next three weeks. The call option volume and open interest data point to a consensus expectation of upward momentum, despite the stock currently trading below all major moving averages.

Technical and Fundamental Context

ICICI Bank’s share price has shown a modest gain of 0.54% on the day, outperforming the private sector banking sector’s 0.19% rise and the broader Sensex’s 0.11% increase. This follows a two-day decline, marking a tentative trend reversal. However, the stock remains below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling that the broader technical trend remains bearish.

Investor participation has risen notably, with delivery volumes reaching 1.64 crore shares on 30 January 2026, a 33.24% increase over the five-day average. This heightened delivery volume suggests genuine accumulation rather than intraday speculative trading, which could support a sustained price recovery if market conditions remain favourable.

Liquidity remains robust, with the stock’s average traded value supporting trade sizes up to ₹50.89 crore, ensuring that large institutional investors can enter or exit positions without significant price impact.

Mojo Score Downgrade Reflects Caution

Despite the bullish derivatives activity, ICICI Bank’s mojo score currently stands at 48.0, with a mojo grade of Sell as of 1 February 2026, downgraded from Hold. This downgrade reflects concerns over valuation and near-term headwinds in the private banking sector. The market cap grade remains at 1, indicating the stock’s large-cap status but also highlighting limited upside from a quality perspective according to the proprietary scoring system.

Investors should weigh this cautious fundamental outlook against the technical signals and options market positioning. The divergence between the derivatives market’s bullish bets and the fundamental downgrade suggests a nuanced view among market participants, with some anticipating a tactical rebound while others remain wary of structural challenges.

Expiry Patterns and Strike Price Significance

The 24 February 2026 expiry is attracting the highest call option volume at the ₹1,360 strike, which is approximately 1.3% above the current underlying price. This strike price is a critical resistance level, and the concentration of open interest here indicates that traders expect the stock to breach this level within the next three weeks.

Such positioning often precedes volatility as expiry approaches, with traders either rolling positions forward or closing out depending on price action. The sustained open interest suggests that many investors are holding onto their bullish bets, potentially anticipating positive triggers such as quarterly earnings or sectoral tailwinds.

Comparative Sector and Market Performance

ICICI Bank’s performance today outpaces the private sector banking sector’s modest gains, signalling relative strength. However, the broader market’s cautious tone, reflected in the Sensex’s 0.11% rise, tempers enthusiasm. The bank’s liquidity and delivery volume improvements are positive indicators, but the technical weakness across all moving averages suggests that a sustained rally will require confirmation through improved fundamentals or macroeconomic catalysts.

Investor Takeaway

For investors considering ICICI Bank Ltd., the current environment presents a complex picture. The surge in call option activity at the ₹1,360 strike price ahead of the 24 February expiry indicates a segment of the market is positioning for a near-term price appreciation. This is supported by rising delivery volumes and relative outperformance versus sector and benchmark indices.

However, the downgrade to a Sell mojo grade and the stock’s position below all major moving averages counsel caution. Investors should monitor upcoming earnings releases, sector developments, and broader market trends to validate the sustainability of any rally.

Options traders appear optimistic but are also likely hedging against volatility, given the proximity of the strike price to the current market price. This dynamic could lead to increased price swings as expiry approaches, offering both opportunities and risks for active traders and long-term investors alike.

Outlook and Strategic Considerations

Given the mixed signals, a prudent approach would be to watch for confirmation of trend reversal through sustained price movement above the ₹1,360 level and improved mojo scores. Until then, investors may consider selective exposure with defined risk parameters, leveraging the stock’s liquidity and active options market to manage positions effectively.

In summary, ICICI Bank Ltd. remains a focal point for derivatives traders and investors alike, with its large-cap stature and sector leadership ensuring continued market attention. The interplay between technical resistance, fundamental caution, and bullish options positioning will shape its near-term trajectory.

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