ICICI Bank Sees Heavy Put Option Activity Amid Bearish Sentiment Ahead of January Expiry

Put Option Activity Highlights

Data from the derivatives market reveals that ICICI Bank’s put options with a strike price of ₹1380 have emerged as the most actively traded contracts. On 14 January 2026, a total of 1,882 contracts changed hands, generating a turnover of approximately ₹90.5 lakhs. The open interest for these puts stands at 4,431 contracts, indicating sustained interest and potential accumulation of bearish bets or protective hedges.

The underlying stock closed at ₹1,433.90, just 4.2% shy of its 52-week high of ₹1,500, underscoring the significance of the ₹1380 strike as a key support level for option traders. The concentration of put activity at this strike suggests that market participants are positioning for a possible downside correction or seeking insurance against a pullback in the near term.

Price and Trend Analysis

ICICI Bank’s stock price has recently experienced a mild reversal after two consecutive days of gains, with a day-on-day decline of 0.14%, slightly underperforming the private sector banking sector’s 0.04% fall and the Sensex’s marginal 0.02% dip. Despite this, the stock remains comfortably above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling a generally bullish medium to long-term trend.

However, investor participation appears to be waning, as delivery volumes on 13 January dropped by 27.1% compared to the five-day average, with 80.89 lakh shares delivered. This decline in active buying interest could be contributing to the cautious stance reflected in the options market.

Liquidity remains robust, with the stock’s average traded value supporting trade sizes up to ₹42.22 crores, ensuring that option and equity traders can execute sizeable positions without significant market impact.

Investor Sentiment and Hedging Implications

The elevated put option volumes at the ₹1380 strike price suggest that investors are increasingly hedging their long positions or speculating on a near-term decline. Given the stock’s proximity to its yearly peak, this behaviour is consistent with a cautious outlook amid potential profit-taking or macroeconomic uncertainties affecting the banking sector.

ICICI Bank’s Mojo Score currently stands at 57.0, reflecting a Hold rating, an improvement from a previous Sell grade assigned on 5 January 2026. This upgrade indicates a tempered optimism among analysts, though the stock’s Market Cap Grade remains at 1, denoting its large-cap status but signalling limited upside from a valuation perspective.

Market participants should note that the put option expiry on 27 January 2026 is likely to be a focal point for volatility, as traders adjust positions ahead of the deadline. The open interest concentration at the ₹1380 strike could act as a magnet for price action, with the stock potentially testing this level in the coming sessions.

Sector and Market Context

Within the private sector banking space, ICICI Bank’s performance today was broadly in line with its peers, with the sector index declining 0.04%. The Sensex’s marginal 0.02% fall reflects a relatively stable market environment, though pockets of uncertainty persist due to global economic factors and domestic policy developments.

ICICI Bank’s large market capitalisation of ₹10,27,276 crores underscores its systemic importance and investor interest. However, the recent dip in delivery volumes and the surge in put option activity highlight a nuanced market sentiment that balances optimism with caution.

Outlook and Investor Takeaways

For investors and traders, the current options market activity in ICICI Bank offers valuable insights into prevailing sentiment. The heavy put option volumes at the ₹1380 strike price ahead of the 27 January expiry suggest a guarded stance, with market participants preparing for potential downside or volatility.

While the stock’s technical indicators remain broadly positive, the decline in delivery volumes and the recent price pullback warrant close monitoring. Investors should consider the balance between the bank’s strong fundamentals and the cautious positioning evident in the derivatives market when making portfolio decisions.

Given the Hold rating and the recent upgrade from Sell, ICICI Bank appears poised for a period of consolidation rather than aggressive upside. Traders utilising options strategies may find opportunities in protective puts or spreads to manage risk effectively during this phase.

Overall, the interplay between equity and options markets underscores the importance of a multi-dimensional approach to analysing ICICI Bank’s near-term prospects.

Key Data Summary:

• Underlying Price: ₹1,433.90


• Put Strike Price: ₹1,380


• Put Contracts Traded: 1,882


• Put Open Interest: 4,431


• Put Turnover: ₹90.5 lakhs


• Expiry Date: 27 January 2026


• Mojo Score: 57.0 (Hold, upgraded from Sell on 5 Jan 2026)


• Market Cap: ₹10,27,276 crores (Large Cap)


• Day Change: -0.14%


• Sector 1D Return: -0.04%


• Sensex 1D Return: -0.02%

Investors should remain vigilant as the expiry date approaches, with the potential for increased volatility and price movements influenced by option expiry dynamics and broader market conditions.

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