Rs 1,350 Puts Draw 2,740 Contracts on ICICI Bank Ltd. as Stock Holds Above Key Moving Averages

Put Options Event and Cash Market Context

On 21 April 2026, ICICI Bank Ltd. witnessed heavy put option trading, with 2,740 contracts changing hands at the Rs 1,350 strike price. This strike is just 1.3% below the current market price of Rs 1,367.50, placing it slightly out-of-the-money (OTM). Other notable put strikes include Rs 1,370 with 2,823 contracts and Rs 1,340 with 1,731 contracts traded, indicating a concentration of activity near the money. The total turnover for these put trades at Rs 1,350 alone was approximately ₹169.36 lakhs, reflecting substantial premium flow.

The expiry date is just a week away, on 28 April 2026, which adds urgency to the positioning. The stock has gained 1.53% over the past three sessions and currently trades above its 5-day, 20-day, 50-day, and 100-day moving averages, though it remains below the 200-day average. This technical setup suggests a short-term bullish momentum with some longer-term resistance.

The delivery volume on 20 April was 1.11 crore shares, down 12.61% from the five-day average, indicating a slight decline in investor participation despite the price rise — is this a sign that the rally lacks conviction and investors are seeking protection?

Strike Price Analysis: Moneyness and Intent

The Rs 1,350 strike sits approximately 1.3% below the current price, categorising these puts as marginally out-of-the-money. The Rs 1,370 strike, in contrast, is slightly in-the-money (ITM) by about 1.6%. The proximity of these strikes to the underlying price is critical in interpreting the intent behind the put activity.

OTM puts close to the current price often serve as protective hedges for existing long positions, especially when the stock is in an uptrend or consolidating near key moving averages. Conversely, ITM puts or ATM puts traded in large volumes during a downtrend typically signal bearish bets. Here, the stock's recent gains and position above short-term moving averages suggest the former interpretation is more plausible.

Moreover, the Rs 1,320 and Rs 1,330 strikes, further out-of-the-money by 3.3% and 2.7% respectively, saw lower contract volumes but still notable open interest, which could indicate layered hedging strategies or spread trades.

Are these put strikes signalling cautious protection or a subtle bearish conviction? The answer lies in the broader options and cash market interplay.

Interpreting the Put Activity: Hedging, Bearish Positioning, or Put Writing?

Put option activity can be ambiguous. The three main interpretations are: directional bearish bets (put buying), hedging of existing long positions, or put writing (selling puts to collect premium, implying bullishness).

Given the stock's recent 1.53% gain over three days and its position above multiple short-term moving averages, the heavy put buying at strikes just below the current price is more consistent with hedging. Investors may be protecting unrealised gains against a short-term pullback rather than anticipating a sharp decline.

Put writing is less likely here, as the open interest at the Rs 1,350 strike (2,171 contracts) is slightly lower than the number of contracts traded (2,740), suggesting fresh buying rather than predominantly selling. Additionally, the high turnover and premium paid at this strike support the view of active put buyers rather than sellers.

Directional bearish positioning would typically manifest as large volumes in ATM or ITM puts during a downtrend, which is not the case for ICICI Bank Ltd. at present.

Open Interest and Contracts Analysis

The open interest (OI) at the Rs 1,350 strike stands at 2,171 contracts, slightly below the 2,740 contracts traded on the day. This ratio of traded contracts to OI (approximately 1.26:1) indicates a significant amount of fresh positioning rather than mere rollovers or unwinding.

Similarly, the Rs 1,370 strike shows 2,823 contracts traded against an OI of 1,085, a ratio of 2.6:1, again pointing to fresh activity. The Rs 1,340 and Rs 1,330 strikes have lower OI relative to contracts traded, suggesting some new positions but less concentration.

This pattern supports the interpretation that investors are actively establishing protective puts rather than liquidating existing positions or aggressively selling puts to collect premium.

Cash Market Context: Momentum and Moving Averages

ICICI Bank Ltd. has been on a modest upward trajectory, gaining 1.53% over the last three sessions and 0.82% on the day of the put activity. The stock trades comfortably above its 5-day, 20-day, 50-day, and 100-day moving averages, signalling short- to medium-term strength. However, it remains below the 200-day moving average, which may act as a longer-term resistance level.

The Rs 1,350 put strike roughly corresponds to a support zone just below the 50-day moving average, which is a common level for investors to hedge against a pullback. The declining delivery volume amid the rally suggests that the price advance may not be fully backed by strong investor participation, raising the question of whether hedging is prudent in this environment.

Delivery Volume and Market Participation

Delivery volume on 20 April was 1.11 crore shares, down 12.61% from the five-day average, indicating a drop in investor commitment despite the price rise. This divergence often prompts investors to seek downside protection through put options, as the rally may lack the conviction needed for sustained gains.

Such a scenario aligns with the observed put activity, where investors appear to be buying protection rather than betting on a sharp decline or aggressively selling puts to generate income.

Conclusion: Protective Hedging Dominates Put Activity

The concentration of put contracts at strikes just below the current price, combined with the stock's recent gains and position above key short-term moving averages, strongly suggests that the heavy put activity in ICICI Bank Ltd. is primarily protective hedging rather than directional bearish bets or put writing.

Open interest and turnover data reinforce the view of fresh put buying, while the declining delivery volume amid the rally points to cautious investor sentiment. The Rs 1,350 strike acts as a technical hedge near a support zone, consistent with prudent risk management in a market that has shown modest strength but lacks robust participation.

With both calls and puts active on the stock, should investors consider hedging their positions or reassess their outlook on ICICI Bank Ltd.?

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