ICICI Bank Sees Surge in Call Option Activity Amid Bullish Market Sentiment

Robust Call Option Activity Signals Investor Optimism

The call option with a strike price of ₹1,420 expiring on 24 February 2026 witnessed an impressive 8,960 contracts traded, generating a turnover of ₹1,095.72 lakhs. Open interest stands at 4,447 contracts, indicating sustained interest and commitment from traders. This heightened activity at a strike price just below the current underlying value of ₹1,423.9 suggests that investors are anticipating a price rally in the near term.

Such concentrated call option trading often points to a bullish outlook, as market participants seek leveraged exposure to potential gains in the stock. The expiry date, less than two weeks away, adds urgency to these positions, reflecting confidence in a short-term price appreciation.

Stock Performance Outpaces Sector and Benchmark Indices

ICICI Bank’s stock price has outperformed its sector peers and the broader market on 12 February 2026. The stock gained 1.31% on the day, surpassing the private sector banking sector’s modest 0.11% rise and contrasting with the Sensex’s decline of 0.45%. This relative strength underscores the bank’s resilience amid mixed market conditions.

Further technical validation comes from the stock trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a sustained upward momentum. Rising investor participation is evident from the delivery volume of 85.28 lakh shares on 11 February, which is 10.56% higher than the five-day average, highlighting increased conviction among long-term holders.

Liquidity and Market Capitalisation Support Active Trading

With a market capitalisation of ₹10,05,725 crore, ICICI Bank is firmly positioned as a large-cap stock, attracting institutional and retail interest alike. The stock’s liquidity is robust, with a five-day average traded value supporting trade sizes up to ₹34.51 crore comfortably. This liquidity facilitates the active options market, enabling sizeable positions without significant price impact.

Mojo Score Upgrade Reflects Improving Outlook

ICICI Bank’s MarketsMOJO score has improved to 54.0, earning a ‘Hold’ grade as of 6 February 2026, upgraded from a previous ‘Sell’ rating. This shift reflects better financial metrics and trend assessments, although the stock still faces challenges in valuation and competitive pressures. The market cap grade remains at 1, indicating its status as a large-cap entity with stable fundamentals.

Investors should note that while the upgrade signals positive momentum, the ‘Hold’ rating suggests cautious optimism rather than an outright buy recommendation. The bank’s performance will need to sustain its current trajectory to warrant further upgrades.

Expiry Patterns and Strike Price Concentration

The concentration of call option activity at the ₹1,420 strike price for the 24 February expiry is particularly noteworthy. This strike is closely aligned with the current stock price, indicating that traders expect the stock to at least maintain or slightly exceed this level by expiry. The open interest of 4,447 contracts at this strike price is substantial, suggesting a significant number of positions that could influence price dynamics as expiry approaches.

Such positioning often leads to price support near the strike level, as market makers and traders hedge their exposures. This dynamic can create a self-reinforcing effect, potentially limiting downside risk in the short term.

Sector Context and Comparative Performance

Within the private sector banking space, ICICI Bank’s outperformance is a positive indicator amid a generally subdued sector environment. The sector’s 0.11% gain on the day pales in comparison to ICICI Bank’s 1.31% rise, highlighting the bank’s relative strength. This may attract further investor interest, especially from those seeking exposure to well-established financial institutions with strong market positions.

However, investors should remain mindful of broader macroeconomic factors and regulatory developments that could impact the banking sector’s trajectory in the coming months.

Investor Takeaway: Balanced Optimism with Vigilance

The surge in call option activity for ICICI Bank Ltd. underscores a bullish sentiment among market participants, supported by strong technicals and improving fundamental scores. The stock’s outperformance relative to its sector and the Sensex further bolsters this positive outlook.

Nonetheless, the ‘Hold’ Mojo grade and the bank’s large-cap status suggest that investors should maintain a balanced approach, recognising both the upside potential and the risks inherent in the banking sector. Monitoring open interest trends and expiry dynamics will be crucial in the coming days to gauge the sustainability of this momentum.

For traders, the active call options at the ₹1,420 strike price offer a strategic vantage point to capitalise on expected price movements, while for long-term investors, the improving fundamentals and market positioning warrant continued attention.

Conclusion

ICICI Bank Ltd. remains a focal point in the options market, with significant call option volumes signalling confidence in near-term gains. The stock’s technical strength, coupled with an upgraded Mojo rating, positions it as a noteworthy contender in the private sector banking space. Investors and traders alike should watch expiry patterns and open interest developments closely to navigate the evolving market landscape effectively.

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