Open Interest and Volume Dynamics
On 25 Feb 2026, Vedanta Ltd. (symbol: VEDL) recorded an open interest of 91,417 contracts in its derivatives, marking a substantial increase of 11,966 contracts or 15.06% compared to the previous OI of 79,451. This surge in OI was accompanied by a trading volume of 1,12,746 contracts, indicating strong participation from traders and investors alike.
The futures segment alone accounted for a value of approximately ₹1,16,102 lakhs, while the options segment's notional value stood at an impressive ₹84,370.99 crores. The combined derivatives turnover reached ₹1,40,403.65 lakhs, underscoring the stock's liquidity and active interest in the derivatives market.
Price Performance and Moving Averages
Vedanta's underlying share price closed at ₹727, having touched an intraday high of ₹732.35, a gain of 5.36% on the day. The stock has been on a positive trajectory, registering gains for two consecutive sessions with a cumulative return of 6.84%. This outperformance is notable against the Non-Ferrous Metals sector's 2.39% gain and the Sensex's modest 0.38% rise on the same day.
Technically, Vedanta is trading above its key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a sustained bullish momentum. This alignment of moving averages often attracts momentum traders and institutional investors, further reinforcing the stock's upward trend.
Investor Participation and Delivery Volumes
Investor engagement has also intensified, with delivery volumes on 24 Feb rising to 54.97 lakh shares, a 25% increase over the five-day average delivery volume. This rise in delivery volume suggests that investors are not merely trading for short-term gains but are also accumulating shares for longer-term holding, reflecting confidence in the company’s fundamentals and outlook.
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Market Positioning and Directional Bets
The sharp increase in open interest, coupled with rising volumes and price appreciation, indicates that market participants are positioning for a continued upside in Vedanta’s shares. The 15.06% jump in OI suggests fresh long positions are being established rather than existing positions being squared off, which typically signals bullish sentiment.
Given the stock’s liquidity, with the ability to handle trade sizes of approximately ₹12.76 crore based on 2% of the five-day average traded value, institutional investors can comfortably build sizeable positions without significant market impact. This liquidity is a critical factor supporting the sustained rise in OI and volume.
Furthermore, Vedanta’s dividend yield of 3.31% at current prices adds an attractive income component for investors, complementing the capital appreciation potential. This combination of yield and growth prospects often appeals to a broad investor base, including dividend-focused funds and long-term wealth creators.
Sectoral Context and Comparative Performance
Within the Non-Ferrous Metals sector, Vedanta’s outperformance by 2.14% relative to its peers on the day highlights its leadership position. The sector itself has gained 2.39%, reflecting positive sentiment driven by global commodity price trends and improving demand outlooks. Vedanta’s market capitalisation of ₹2,80,844 crore places it firmly in the large-cap category, attracting institutional interest and inclusion in thematic portfolios.
However, it is noteworthy that the company’s Mojo Grade was downgraded from Buy to Hold on 23 Feb 2026, with a current Mojo Score of 68.0. This adjustment reflects a more cautious stance amid valuation considerations and sectoral cyclicality. Investors should weigh this rating change alongside the strong technical and volume signals when making allocation decisions.
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Implications for Investors
The recent surge in open interest and volume in Vedanta’s derivatives market suggests that traders are increasingly confident about the stock’s near-term upside potential. The alignment of technical indicators, rising delivery volumes, and sectoral tailwinds provide a compelling backdrop for bullish positioning.
Nonetheless, the downgrade in Mojo Grade to Hold signals that investors should remain vigilant about valuation risks and sector cyclicality. Commodity prices, regulatory developments, and global economic conditions remain key variables that could influence Vedanta’s trajectory.
For investors with a medium to long-term horizon, Vedanta’s combination of dividend yield, market leadership, and improving price momentum offers an attractive risk-reward profile. Active monitoring of open interest trends and volume patterns can provide timely insights into evolving market sentiment and positioning.
Conclusion
Vedanta Ltd.’s recent open interest surge in derivatives, coupled with strong volume and price action, underscores a growing bullish consensus among market participants. While the stock has outperformed its sector and broader indices, the recent rating adjustment advises a balanced approach. Investors should consider both the technical momentum and fundamental factors before making allocation decisions in this large-cap non-ferrous metals heavyweight.
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