ICICI Bank Sees Robust Call Option Activity Amid Bearish Price Momentum

Call Option Activity Highlights

The most active call options for ICICI Bank are clustered around strike prices slightly above the current underlying value of ₹1,355. Notably, the 1,370 strike call saw the highest number of contracts traded at 6,633, generating a turnover of ₹279.05 lakhs and an open interest of 4,232 contracts. Close behind, the 1,380 strike call recorded 5,549 contracts traded with a turnover of ₹142.55 lakhs and a robust open interest of 5,841 contracts. The 1,360 strike call also attracted substantial activity, with 5,296 contracts traded and a turnover of ₹360.71 lakhs, supported by an open interest of 3,423 contracts.

This concentration of call option volume at strike prices between ₹1,360 and ₹1,380 suggests that market participants are positioning for a potential upside move in ICICI Bank’s share price in the near term, anticipating a rally beyond these levels by the expiry date. The open interest figures reinforce this view, indicating sustained interest and commitment to these strike prices.

Price Performance and Technical Context

Contrasting with the bullish derivatives positioning, ICICI Bank’s spot price has been under pressure. The stock has declined by 1.37% on the day, underperforming the private sector banking sector’s 0.46% fall and the Sensex’s marginal 0.16% dip. Over the past five trading sessions, the stock has recorded a consecutive fall, losing 5.66% in value. This downtrend is further confirmed by the stock trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a bearish technical setup.

Investor participation appears to be waning, with delivery volume on 20 January 2026 falling by 2.58% to 93.94 lakh shares compared to the five-day average. Despite this, liquidity remains adequate, with the stock’s traded value supporting a trade size of approximately ₹45.84 crores based on 2% of the five-day average traded value, ensuring that institutional and retail investors can transact without significant price impact.

Mojo Score and Analyst Ratings

ICICI Bank currently holds a Mojo Score of 54.0, placing it in the 'Hold' category. This represents an upgrade from a previous 'Sell' rating issued on 5 January 2026, reflecting a modest improvement in the bank’s fundamental and technical outlook. However, the Market Cap Grade remains at 1, indicating that despite its large-cap status, the stock’s quality metrics and momentum are not yet compelling enough to warrant a stronger buy recommendation.

Analysts remain cautious given the recent price weakness and the bank’s underperformance relative to its sector. The mixed signals from the derivatives market and spot price action suggest that investors are hedging their bets, with some anticipating a rebound while others remain wary of near-term headwinds such as macroeconomic uncertainties and sector-specific challenges.

Expiry Patterns and Market Implications

The expiry date of 27 January 2026 is a focal point for traders, with the clustering of call option activity indicating a key resistance zone between ₹1,360 and ₹1,380. Should the stock breach these levels, it could trigger a short squeeze or a fresh wave of buying, potentially reversing the current downtrend. Conversely, failure to surpass these strikes may lead to profit-taking and increased volatility as expiry approaches.

Open interest data reveals that the 1,380 strike call has the highest outstanding contracts, suggesting that many traders are betting on the stock reaching or exceeding this price. This level will be closely watched by market participants as a barometer of bullish conviction.

Sector and Market Context

Within the private sector banking industry, ICICI Bank’s recent underperformance is notable. The sector has been relatively resilient, with many peers showing steadier price action. The bank’s 1-day return of -1.37% contrasts with the sector’s -0.46%, highlighting relative weakness. This divergence may be attributed to profit booking, sector rotation, or concerns over asset quality and credit growth prospects.

Investors should also consider the broader market environment. The Sensex’s marginal decline of 0.16% on the same day suggests that the weakness in ICICI Bank is more stock-specific than market-driven. This could present selective buying opportunities if the bank’s fundamentals improve or if technical support levels hold.

Investor Takeaway

ICICI Bank’s heavy call option activity ahead of the 27 January expiry signals a degree of bullish sentiment among derivatives traders, who appear to be positioning for a rebound above the ₹1,360–₹1,380 range. However, the stock’s recent price weakness, underperformance relative to its sector, and trading below all major moving averages suggest caution.

Investors should monitor the stock’s price action closely in the coming days, particularly around the key strike prices where open interest is concentrated. A decisive move above these levels could validate the bullish options positioning and attract fresh buying interest. Conversely, failure to break resistance may lead to further downside pressure.

Given the current Mojo Score of 54.0 and a Hold rating, ICICI Bank may be best suited for investors with a moderate risk appetite who are willing to wait for clearer directional cues. Those seeking more aggressive exposure might consider exploring alternative banking stocks or sectors with stronger momentum and fundamentals.

Conclusion

In summary, ICICI Bank Ltd. presents a nuanced picture with robust call option activity signalling optimism among some traders, while the spot market reflects caution and consolidation. The interplay between these forces will shape the stock’s trajectory as the January expiry approaches, making it a key focus for market participants in the private sector banking space.

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