Vedanta Ltd Sees Robust Call Option Activity Amid Bullish Momentum

Robust Call Option Activity Highlights Investor Optimism

On 27 January 2026, Vedanta Ltd. (stock code: 801588) emerged as the most active stock in call options trading, with the 700 strike price call options seeing a remarkable 3,526 contracts traded. This activity generated a turnover of ₹12.9351 crores, reflecting heightened speculative interest and confidence in the stock’s upward trajectory. Open interest at this strike price stood at 2,515 contracts, underscoring sustained positions held by traders anticipating further price appreciation.

The underlying stock price closed at ₹701.75, marginally above the 700 strike price, indicating that the call options are trading near-the-money. This proximity often attracts aggressive positioning from market participants expecting a breakout or continuation of the current rally.

Price Performance and Technical Strength

Vedanta Ltd. has been on a steady upward path, gaining 4.14% over the past four consecutive trading sessions. On the day of the options expiry, the stock touched an intraday high of ₹707.35, marking a fresh 52-week and all-time high. Despite this, it marginally underperformed its sector, the Non-Ferrous Metals index, which gained 2.6% on the same day, while Vedanta’s day return was 2.61% compared to the sector’s 2.35% and Sensex’s 0.37%.

Technically, Vedanta is trading above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a strong bullish trend. This technical strength is likely a key driver behind the surge in call option volumes, as traders position themselves to capitalise on further upside momentum.

Market Capitalisation and Quality Metrics

Vedanta Ltd. is a large-cap stock with a market capitalisation of ₹2,74,509.24 crores, reflecting its dominant position in the Non-Ferrous Metals industry. The company holds a Mojo Score of 78.0 and a Mojo Grade of Buy, recently adjusted from a Strong Buy on 13 January 2026. This slight moderation in rating suggests a cautious but positive outlook, balancing strong fundamentals with near-term market dynamics.

Liquidity remains robust, with the stock’s average traded value supporting trade sizes up to ₹26.42 crores comfortably. Dividend yield stands at a healthy 3.36%, adding to the stock’s appeal for income-focused investors amid the bullish technical setup.

Sector Context and Investor Participation

The Non-Ferrous Metals sector has been gaining traction, with a 2.6% rise on the day Vedanta hit its new highs. Vedanta’s performance, while slightly lagging the sector by 0.44%, remains impressive given the broader market conditions. However, investor participation as measured by delivery volume has shown a slight decline, with 87.81 lakh shares delivered on 23 January 2026, down 1.15% against the five-day average. This dip suggests some profit booking or cautious stance among long-term holders despite the bullish derivatives activity.

Options Expiry Patterns and Strike Price Concentration

The concentration of call option activity at the 700 strike price, coinciding with the stock’s current trading level, indicates a critical resistance zone that traders are closely monitoring. The expiry on 27 January 2026 has attracted significant open interest, which could lead to volatility as positions are squared off or rolled forward. The high turnover and open interest at this strike price reflect a consensus expectation of the stock sustaining or surpassing this level in the near term.

Such patterns often precede directional moves, with market makers and institutional players adjusting hedges accordingly. The active call option market also suggests that investors are favouring leveraged bullish bets over outright stock purchases, possibly due to capital efficiency and risk management considerations.

Implications for Investors and Market Outlook

The surge in call option volumes at the 700 strike price, coupled with Vedanta’s technical strength and large-cap stature, signals a positive near-term outlook. Investors should note the stock’s ability to sustain above key moving averages and its recent all-time highs as indicators of underlying momentum.

However, the slight downgrade from Strong Buy to Buy by MarketsMOJO on 13 January 2026 suggests that while the stock remains attractive, investors should remain vigilant for potential volatility around the options expiry. The falling delivery volumes hint at some profit-taking, which could temper gains in the short term.

Overall, Vedanta Ltd. presents a compelling case for bullish positioning, especially for those looking to leverage derivatives for enhanced returns. The active call option market provides both a gauge of sentiment and a mechanism for strategic exposure to the stock’s anticipated upside.

Summary of Key Metrics:

• Stock Price (27 Jan 2026): ₹701.75


• 52-Week High: ₹707.35


• Call Option Strike Price: ₹700


• Number of Contracts Traded: 3,526


• Turnover in Call Options: ₹12.9351 crores


• Open Interest: 2,515 contracts


• Market Cap: ₹2,74,509.24 crores


• Mojo Score: 78.0 (Buy, downgraded from Strong Buy)


• Dividend Yield: 3.36%


• Sector Performance (Non-Ferrous Metals): +2.6%

Conclusion

Vedanta Ltd.’s active call option market and strong price action reflect a bullish consensus among investors, supported by solid fundamentals and technical indicators. While some caution is warranted due to recent rating adjustments and delivery volume trends, the stock remains well-positioned within its sector. Market participants should monitor option expiry dynamics closely, as they may influence near-term price movements and offer strategic opportunities for both traders and long-term investors.

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