Call Option Activity Highlights
Vedanta’s call options with strike prices of ₹570, ₹580, and ₹600 have emerged as the most actively traded contracts. The ₹580 strike leads with 9,609 contracts traded, generating a turnover of approximately ₹1,192.33 lakhs. The ₹600 strike follows with 8,108 contracts traded and a turnover of ₹467.14 lakhs, while the ₹570 strike recorded 6,737 contracts with a turnover of ₹1,155.16 lakhs. Open interest figures further underscore the prominence of these strikes, with the ₹600 strike showing the highest open interest at 6,344 contracts, indicating sustained investor interest in this price level.
The underlying stock price of Vedanta stood at ₹569.20 at the time of these trades, placing the ₹570 and ₹580 strikes near-the-money and the ₹600 strike slightly out-of-the-money. This distribution suggests that market participants are positioning for potential upward price movement in the near term, with a focus on the December expiry.
Price Performance and Market Context
Vedanta’s stock price reached a new 52-week and all-time high of ₹580.45 on the day of analysis, reflecting a strong upward trend over the past week. The stock has recorded gains over seven consecutive trading sessions, delivering an 11.78% return during this period. Despite a minor decline of 0.05% on the day, Vedanta’s performance contrasts with its sector, which gained 2.06%, and the broader Sensex, which rose by 0.17%.
Technical indicators show Vedanta trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling a sustained positive momentum. The stock’s liquidity remains robust, with a delivery volume of 1.37 crore shares on 16 December, representing a 97.32% increase compared to the five-day average delivery volume. This heightened investor participation supports the active options market seen in the stock.
Dividend Yield and Market Capitalisation
Vedanta offers a dividend yield of 5.53% at the current price level, which may appeal to income-focused investors alongside those seeking capital appreciation. The company’s market capitalisation stands at ₹2,22,579.29 crore, categorising it as a large-cap stock within the Non-Ferrous Metals industry.
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Investor Positioning and Expiry Patterns
The concentration of call option activity at strikes ₹570, ₹580, and ₹600 with expiry on 30 December 2025 indicates a strategic positioning by investors anticipating potential price appreciation before the year-end. The open interest data suggests that traders are not only initiating new positions but also maintaining existing ones, reflecting confidence in Vedanta’s near-term prospects.
Options turnover figures reveal that the ₹580 strike has attracted the highest trading volume, which aligns closely with the stock’s recent peak price. This strike price acts as a critical level for market participants, balancing risk and reward in their bullish outlook. The ₹600 strike, while slightly out-of-the-money, shows the highest open interest, signalling that some investors are targeting a more optimistic price scenario.
Sectoral and Broader Market Comparison
Within the Non-Ferrous Metals sector, Vedanta’s recent price action and options market activity stand out. The sector’s 2.06% gain contrasts with Vedanta’s slight underperformance on the day, yet the stock’s week-long rally and new highs demonstrate underlying strength. This divergence may reflect selective profit-taking or sector rotation dynamics ahead of the December expiry.
Compared to the Sensex’s modest 0.17% rise, Vedanta’s sustained gains over the past week highlight its role as a key driver within the metals space. The stock’s liquidity, supported by a traded value capacity of approximately ₹21.3 crore based on recent averages, ensures that investors can execute sizeable trades without significant market impact.
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Outlook and Considerations for Investors
Vedanta’s active call option market and recent price trajectory suggest that investors are positioning for continued momentum into the final weeks of 2025. The proximity of strike prices to the current market value indicates a focus on near-term gains, while the open interest levels reflect a degree of conviction in these expectations.
However, the slight underperformance relative to the sector on the day and the stock’s sensitivity to broader market movements warrant cautious monitoring. Investors should consider the interplay of technical signals, sector trends, and macroeconomic factors when assessing Vedanta’s potential trajectory.
Overall, the data points to a dynamic market environment for Vedanta, with significant investor engagement in both the cash and derivatives segments. The stock’s liquidity, dividend yield, and market capitalisation further contribute to its appeal among a diverse range of market participants.
Summary
Vedanta Ltd. has emerged as a focal point in the options market with substantial call option volumes concentrated around the ₹570 to ₹600 strike prices expiring on 30 December 2025. The stock’s recent price highs, sustained gains over the past week, and strong investor participation underpin this activity. While the stock experienced a minor decline on the day, its overall trend remains positive, supported by technical indicators and sectoral context. Investors are advised to keep a close watch on evolving market conditions as the expiry date approaches.
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