Open Interest and Volume Dynamics
On 25 Feb 2026, Vedanta Ltd. (symbol: VEDL) recorded an open interest of 87,438 contracts in its derivatives, marking a 10.05% increase from the previous figure of 79,451. This rise of 7,987 contracts is significant, especially when coupled with a daily volume of 81,173 contracts, indicating strong participation from traders and investors alike.
The futures value stood at ₹85,877.43 lakhs, while the options segment exhibited an enormous notional value of approximately ₹60,896.64 crores, culminating in a total derivatives value exceeding ₹1,04,387.70 lakhs. The underlying stock price closed at ₹730, having touched an intraday high of ₹732.35, up 5.36% on the day.
Price Performance and Market Context
Vedanta has outperformed its sector, the Metal - Non Ferrous index, which gained 2.3% on the same day. The stock itself delivered a 5.05% return, surpassing the Sensex’s modest 0.82% gain. Notably, Vedanta has been on a two-day winning streak, accumulating a 7.3% return over this period, signalling strong bullish momentum.
Technical indicators reinforce this positive trend, with the stock trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Such positioning suggests sustained upward momentum and investor confidence in the near to medium term.
Investor Participation and Liquidity
Investor engagement has also intensified, as evidenced by a 25% rise in delivery volume to 54.97 lakh shares on 24 Feb, compared to the five-day average. This increase in delivery volume indicates that investors are not merely trading for short-term gains but are also accumulating shares for longer-term holding.
Liquidity remains robust, with the stock’s traded value supporting sizeable trade sizes up to ₹12.76 crores based on 2% of the five-day average traded value. This liquidity ensures that institutional and retail investors can transact without significant price impact, further encouraging participation.
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Implications of Rising Open Interest
The 10.05% increase in open interest alongside rising prices and volumes typically signals fresh buying interest rather than short-covering. This suggests that market participants are positioning for further upside in Vedanta’s shares, anticipating positive catalysts or continued sectoral strength.
Given Vedanta’s large market capitalisation of ₹2,80,844 crores and its current Mojo Score of 68.0, the stock is rated as a Hold, having been downgraded from a Buy on 23 Feb 2026. This adjustment reflects a more cautious stance amid recent gains, though the underlying fundamentals and technicals remain supportive.
Sectoral and Dividend Context
The Non-Ferrous Metals sector has gained 2.3% on the day, with Vedanta outperforming by a significant margin. The company’s dividend yield stands at a healthy 3.31%, adding to its appeal for income-focused investors amid volatile markets.
Vedanta’s strong liquidity profile and consistent price appreciation position it well within the sector, though investors should remain mindful of commodity price fluctuations and global economic factors that could impact metals demand.
Market Positioning and Directional Bets
The surge in open interest and volume points to increased directional bets on Vedanta’s stock. Traders appear to be taking long positions in futures and call options, anticipating further price appreciation. The substantial notional value in options contracts underscores active hedging and speculative activity, reflecting a complex interplay of risk management and bullish sentiment.
Such positioning often precedes significant price moves, as market participants adjust their exposure based on evolving fundamentals and technical signals. The current trend suggests a consensus leaning towards upside potential, supported by strong sectoral momentum and company-specific factors.
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Outlook and Investor Considerations
While the recent surge in open interest and price gains are encouraging, investors should weigh the Hold rating and recent downgrade in the context of broader market conditions. Commodity prices, regulatory developments, and global demand trends remain key variables influencing Vedanta’s performance.
Investors with a medium to long-term horizon may find value in the stock’s attractive dividend yield and improving technicals, while traders might capitalise on the heightened volatility and liquidity in the derivatives market.
Overall, Vedanta Ltd. continues to command significant attention in the Non-Ferrous Metals sector, with its derivatives activity providing valuable insights into market sentiment and positioning.
Summary
Vedanta Ltd.’s derivatives market has experienced a meaningful increase in open interest by over 10%, accompanied by strong volume and price appreciation. This reflects growing bullish sentiment and active positioning by market participants. Despite a recent downgrade to Hold, the stock’s technical strength, dividend yield, and sector outperformance make it a key focus for investors and traders alike.
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