Vedanta Ltd Gains 5.29%: 7 Key Factors Driving This Week’s Momentum

23 February 2026: Modest Start Amid Sensex Gains

Vedanta Ltd began the week at Rs.681.40, registering a slight decline of 0.14% despite the Sensex rising 0.39% to 36,817.86. Trading volume was moderate at 4,25,790 shares. The stock’s minor dip contrasted with broader market optimism, reflecting early caution ahead of upcoming technical and fundamental developments.

24 February 2026: Downgrade to Hold and Technical Momentum Shift

On 24 February, Vedanta was downgraded by MarketsMOJO from a Buy to a Hold rating, citing mixed technical and valuation signals. The stock rebounded strongly, gaining 2.05% to close at Rs.695.40, outperforming the Sensex which fell 0.78%. Technical indicators shifted from bullish to mildly bullish, with MACD remaining positive but RSI turning bearish on the weekly chart. This nuanced technical picture suggested a consolidation phase amid strong fundamentals.

25 February 2026: Intraday High and Surge in Derivatives Activity

Vedanta demonstrated robust strength on 25 February, surging 4.64% to close at Rs.727.65 and touching an intraday high of Rs.718.5. The stock outperformed the Sensex’s 0.41% gain and the non-ferrous metals sector. Trading volume soared to 24,81,545 shares, with delivery volumes rising 25% over the five-day average, signalling strong institutional interest.

Notably, call option activity surged, with the 720 strike price contracts leading turnover at ₹1506.3 lakhs. Open interest increased by 16.78%, reflecting fresh long positions and bullish market sentiment. Technical indicators upgraded from mildly bullish to bullish, supported by strong MACD and moving averages alignment.

26 February 2026: Sustained Buying and Institutional Confidence

On 26 February, Vedanta continued its upward trajectory, gaining 1.33% to close at Rs.737.35. The stock recorded a traded volume of 5,23,526 shares and delivery volumes surged to over 1 crore shares, a 125.86% increase over the five-day average. This surge in delivery volume highlights strong conviction among long-term investors.

Vedanta’s price remained above all key moving averages, reinforcing a bullish technical stance. The Mojo Grade remained at Hold with a score of 68.0, reflecting cautious optimism amid strong price momentum and institutional participation.

27 February 2026: High-Value Trading Amid Mixed Market Sentiment

Vedanta’s week concluded with a slight pullback, closing at Rs.718.45, down 2.56% on the day. Despite this, the stock remained well above its weekly open and maintained technical support above key moving averages. Trading volume was 3,95,384 shares, with a total traded value exceeding ₹1,125 crores, underscoring strong liquidity.

The stock underperformed the sector’s 0.58% gain and the Sensex’s 0.54% decline, reflecting selective profit-taking or cautious repositioning by investors. Delivery volumes dipped marginally by 0.22%, suggesting a temporary pause in accumulation. The Mojo Grade stayed at Hold, signalling continued analyst caution amid volatile market conditions.

Key Takeaways

Strong Weekly Outperformance: Vedanta’s 5.29% weekly gain significantly outpaced the Sensex’s 0.96% decline, highlighting the stock’s resilience amid mixed market conditions.

Technical Momentum Shifts: The stock’s technical profile evolved from bullish to mildly bullish and back to bullish during the week, supported by MACD, moving averages, and rising delivery volumes, though some oscillators like RSI signalled short-term caution.

Robust Institutional Interest: Delivery volumes surged notably, especially on 25 and 26 February, indicating strong accumulation by long-term investors and institutions.

Derivatives Market Activity: Sharp increases in call option volumes and open interest reflect bullish positioning ahead of the 30 March expiry, with strike prices clustered around Rs.700-720.

Valuation and Rating Caution: Despite strong fundamentals and price momentum, MarketsMOJO downgraded Vedanta to a Hold rating, citing mixed technical signals and elevated valuation multiples.

Dividend Yield Support: A healthy dividend yield around 3.3% provides income appeal amid price volatility.

Liquidity and Trade Size: High traded values and volumes ensure the stock can accommodate large institutional trades without significant price impact.

Conclusion

Vedanta Ltd’s performance over the week ending 27 February 2026 reflects a complex interplay of strong price gains, evolving technical signals, and cautious analyst sentiment. The stock’s 5.29% weekly rise amid a declining Sensex underscores its relative strength and investor interest, particularly from institutional participants. However, the downgrade to a Hold rating and mixed technical indicators counsel prudence, suggesting that while momentum remains positive, investors should monitor valuation levels and sector dynamics closely.

Robust derivatives activity and rising delivery volumes indicate sustained confidence, but the recent price pullback on the final trading day highlights potential near-term volatility. Overall, Vedanta remains a key large-cap player in the non-ferrous metals sector, balancing attractive fundamentals with the need for measured optimism in a fluctuating market environment.

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