Open Interest and Volume Dynamics
On 25 Feb 2026, Vedanta Ltd. (symbol: VEDL) recorded an open interest of 89,873 contracts in its derivatives, marking a substantial increase of 10,422 contracts or 13.12% compared to the previous OI of 79,451. This rise in OI was accompanied by a trading volume of 1,00,626 contracts, reflecting strong investor engagement in the stock’s futures and options segments.
The futures value stood at approximately ₹1,05,763 lakhs, while the options segment exhibited an extraordinary notional value of ₹75,226 crores, culminating in a combined derivatives market value of ₹1,27,918 lakhs. Such elevated figures underscore the growing speculative and hedging interest in Vedanta’s shares.
Price Performance and Market Context
Vedanta’s underlying share price closed at ₹729, having touched an intraday high of ₹732.35, up 5.36% on the day. The stock outperformed its sector, the Non-Ferrous Metals index, which gained 3.25%, and the broader Sensex, which rose by a modest 0.64%. Over the past two consecutive sessions, Vedanta has delivered a cumulative return of 7.21%, signalling sustained bullish momentum.
Notably, the stock is trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — indicating a strong technical uptrend. This technical strength is further supported by a rising delivery volume of 54.97 lakh shares on 24 Feb, which surged 25% above the five-day average, reflecting increased investor conviction and participation.
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Interpreting the Surge in Open Interest
The 13.12% increase in open interest alongside rising prices and volumes typically suggests fresh long positions being established, reflecting bullish sentiment among traders. This is corroborated by the stock’s outperformance relative to its sector and the broader market.
Such a pattern often indicates that investors are positioning for further upside, possibly anticipating positive catalysts such as improved commodity prices, favourable regulatory developments, or strong quarterly earnings. Vedanta’s high dividend yield of 3.31% at the current price also adds to its appeal as a value proposition within the metals space.
Market Positioning and Potential Directional Bets
Given the large-cap status of Vedanta with a market capitalisation of ₹2,85,341 crores, the stock attracts institutional interest and is a key component of the non-ferrous metals sector. The recent downgrade in Mojo Grade from Buy to Hold on 23 Feb 2026, with a current Mojo Score of 68.0, suggests a more cautious stance by analysts, possibly reflecting valuation concerns or sector headwinds.
However, the strong derivatives activity and price momentum imply that traders are still optimistic about near-term gains. The liquidity profile, with the ability to handle trade sizes of up to ₹12.76 crores based on 2% of the five-day average traded value, supports active participation by large investors and hedge funds.
Overall, the market positioning appears to be skewed towards a bullish directional bias, with participants likely leveraging futures and options to capitalise on expected price appreciation while managing risk through hedging strategies.
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Sectoral and Broader Market Implications
The non-ferrous metals sector has gained 3.25% on the day, supported by rising commodity prices and improving demand outlook. Vedanta’s outperformance by 1.84% relative to the sector highlights its leadership position and investor preference within this space.
With the Sensex advancing only 0.64%, Vedanta’s strong showing underscores the selective strength in metal stocks, driven by both fundamental and technical factors. The stock’s ability to sustain above key moving averages further reinforces its bullish technical setup.
Investor Takeaways and Outlook
Investors should note the mixed signals from the recent downgrade in Mojo Grade to Hold, which advises caution amid valuation and sector uncertainties. Nonetheless, the robust open interest growth, rising volumes, and price momentum suggest that the market is currently favouring a positive outlook on Vedanta’s near-term prospects.
Those considering exposure to Vedanta should monitor derivatives activity closely as a barometer of market sentiment and positioning. The elevated futures and options values indicate significant speculative interest, which could amplify price moves in either direction depending on upcoming news flow and commodity price trends.
Given the stock’s liquidity and dividend yield, it remains an attractive option for investors seeking a blend of income and capital appreciation within the metals sector, provided they remain vigilant to sectoral risks and valuation metrics.
Conclusion
Vedanta Ltd.’s recent surge in open interest and trading volumes, coupled with strong price performance, signals a notable shift in market positioning towards bullish directional bets. While analyst ratings have moderated, the stock’s technical strength and sector leadership continue to attract investor interest. Market participants should weigh these factors carefully to align their strategies with evolving market dynamics.
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