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

Robust Call Option Trading Highlights Investor Optimism

The private sector banking giant witnessed a remarkable surge in call option activity, with 8,128 contracts traded at the ₹1,400 strike price for the expiry dated 30 March 2026. This translated into a turnover of approximately ₹1,612.43 lakhs, underscoring the substantial capital flow into bullish derivative positions. Open interest currently stands at 3,926 contracts, indicating sustained investor interest and potential for further price movement.

ICICI Bank’s underlying stock price at ₹1,403.7 is marginally above the strike price of these call options, suggesting that traders are anticipating a continuation of the recent upward momentum. The stock has outperformed its sector by 0.58% today and has recorded a 1.47% gain over the past two consecutive trading sessions, signalling positive market sentiment.

Technical Indicators Support Bullish Outlook

From a technical perspective, ICICI Bank is trading above its key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This alignment of short-term and long-term moving averages typically signals a strong uptrend, attracting momentum traders and institutional investors alike.

Investor participation has also risen notably, with delivery volumes reaching 1.23 crore shares on 25 February 2026, a 70.25% increase compared to the five-day average delivery volume. Such heightened activity reflects growing conviction among shareholders and traders, reinforcing the bullish narrative.

Liquidity remains robust, with the stock’s traded value supporting sizeable transactions up to ₹40.64 crore based on 2% of the five-day average traded value. This ensures that large trades can be executed without significant price impact, an important consideration for institutional investors.

Mojo Score and Market Capitalisation Context

ICICI Bank currently holds a Mojo Score of 54.0, categorised as a 'Hold' rating, an improvement from its previous 'Sell' grade as of 6 February 2026. This upgrade reflects a more favourable outlook based on recent performance metrics and market conditions. Despite the modest day change of -0.06%, the stock’s large market capitalisation of ₹10,00,228 crore firmly establishes it as a heavyweight in the private sector banking space.

While the Mojo Grade suggests cautious optimism, the stock’s recent outperformance relative to the sector and Sensex — which declined by 0.30% and 0.10% respectively on the same day — highlights its relative strength amid broader market pressures.

Expiry Patterns and Strike Price Concentration

The concentration of call option activity at the ₹1,400 strike price for the 30 March 2026 expiry is particularly noteworthy. This strike price is closely aligned with the current market price, indicating that traders are positioning for a breakout above this level within the next month. The sizeable open interest suggests that many investors are either hedging existing positions or speculating on a near-term rally.

Such expiry patterns often precede significant price movements, as traders adjust their positions in response to evolving market dynamics. The heavy call option volume may also exert upward pressure on the underlying stock due to delta hedging by market makers, potentially amplifying gains if the stock price rises.

Sectoral and Market Implications

ICICI Bank’s strong derivative activity contrasts with the broader private sector banking sector, which has seen mixed performance in recent weeks. The bank’s ability to outperform its peers and maintain positive momentum could attract further investor interest, especially from those seeking exposure to India’s expanding financial services industry.

Given the bank’s large-cap status and liquidity profile, it remains a preferred choice for both retail and institutional investors looking to capitalise on India’s economic growth and rising credit demand.

Investor Takeaways and Outlook

For investors, the surge in call option activity at near-the-money strike prices signals a cautiously optimistic outlook on ICICI Bank’s stock trajectory. The alignment of technical indicators, rising delivery volumes, and relative outperformance against sector and benchmark indices collectively support a bullish stance.

However, the current Mojo Grade of 'Hold' advises measured exposure, suggesting that while the stock shows promise, investors should remain vigilant to broader market conditions and sectoral developments. The upcoming expiry on 30 March 2026 will be a critical juncture to assess whether the bullish momentum sustains or if profit-taking pressures emerge.

Overall, ICICI Bank’s active call option market and improving fundamentals make it a key stock to watch in the private sector banking space, especially for those seeking to capitalise on derivative-driven price movements.

Summary of Key Metrics:

• Underlying stock price: ₹1,403.7
• Most active call strike price: ₹1,400 (expiry 30 Mar 2026)
• Number of call contracts traded: 8,128
• Turnover in call options: ₹1,612.43 lakhs
• Open interest: 3,926 contracts
• Mojo Score: 54.0 (Hold, upgraded from Sell on 6 Feb 2026)
• Market cap: ₹10,00,228 crore (Large Cap)
• Delivery volume on 25 Feb 2026: 1.23 crore shares (+70.25% vs 5-day avg)
• Relative performance: Outperformed sector by 0.58% today

As the expiry date approaches, market participants will closely monitor price action and option open interest changes to gauge the sustainability of the current bullish trend in ICICI Bank’s shares.

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