Vedanta Ltd Sees Sharp Open Interest Surge Amid Strong Market Momentum

Open Interest and Volume Dynamics

On 25 Feb 2026, Vedanta’s open interest (OI) in futures and options contracts rose sharply by 12,261 contracts, a 15.43% increase from the previous day’s 79,451 to 91,712. This notable expansion in OI was accompanied by a robust volume of 1,24,680 contracts, indicating strong participation from both institutional and retail traders. The futures value stood at ₹1,32,152.02 lakhs, while the options segment exhibited an enormous notional value of ₹92,891.10 crores, underscoring the stock’s liquidity and active derivatives market.

The total derivatives value traded aggregated to ₹1,58,937.99 lakhs, reflecting a vibrant trading environment. Such a surge in open interest alongside high volumes typically signals fresh positions being initiated rather than existing ones being squared off, often interpreted as a precursor to a sustained price move.

Price Performance and Technical Positioning

Vedanta’s underlying equity price closed at ₹722, having touched an intraday high of ₹732.35, marking a 5.36% gain on the day. The stock has outperformed its non-ferrous metals sector by 1.5% and the broader Sensex by a substantial margin, with a 3.86% one-day return compared to the sector’s 2.83% and Sensex’s 0.18%. Over the past two consecutive trading sessions, Vedanta has delivered a cumulative return of 6.16%, reflecting strong bullish momentum.

Technically, Vedanta is trading above all key moving averages—5-day, 20-day, 50-day, 100-day, and 200-day—indicating a well-established uptrend. This technical strength is further supported by rising delivery volumes, which surged by 25% to 54.97 lakh shares on 24 Feb compared to the five-day average, signalling genuine investor participation rather than speculative trading.

Market Positioning and Potential Directional Bets

The sharp increase in open interest, combined with rising volumes and price appreciation, suggests that market participants are positioning for further upside in Vedanta. The derivatives data implies that traders are likely taking fresh long positions, anticipating continued strength in the non-ferrous metals sector amid improving global commodity demand and favourable macroeconomic conditions.

Moreover, the stock’s high dividend yield of 3.31% at current prices adds an attractive income component, potentially drawing in long-term investors alongside traders. The liquidity profile remains robust, with the stock capable of handling trade sizes up to ₹12.76 crores based on 2% of the five-day average traded value, ensuring ease of entry and exit for large participants.

Mojo Score and Analyst Ratings

Vedanta currently holds a Mojo Score of 68.0, categorised as a ‘Hold’ rating, a downgrade from its previous ‘Buy’ grade on 23 Feb 2026. This adjustment reflects a cautious stance amid recent volatility and valuation considerations, despite the positive price action and derivatives activity. The company’s market capitalisation stands at a substantial ₹2,82,310.47 crores, classifying it as a large-cap stock within the non-ferrous metals industry.

While the downgrade signals some reservations, the stock’s technical and derivatives indicators suggest that short-term momentum remains intact. Investors should weigh these factors carefully, considering both the potential for further gains and the risks associated with sector cyclicality and commodity price fluctuations.

Sectoral Context and Broader Market Implications

The non-ferrous metals sector has gained 2.75% recently, supported by improving global demand for metals such as aluminium, copper, and zinc. Vedanta, as a key player in this space, is benefiting from this tailwind. The sector’s performance relative to the broader market and Vedanta’s outperformance highlight the stock’s leadership position.

Investors tracking sectoral trends should note the rising investor participation in Vedanta, as evidenced by delivery volumes and derivatives positioning. This could signal a broader rotation into metal stocks, especially those with strong fundamentals and dividend yields.

Investor Takeaways and Outlook

The recent surge in open interest and volume in Vedanta’s derivatives market is a clear indication of increased market interest and potential directional bets favouring an upward trajectory. The stock’s technical strength, coupled with improving delivery volumes and a healthy dividend yield, makes it an attractive proposition for investors seeking exposure to the non-ferrous metals sector.

However, the downgrade in Mojo Grade to ‘Hold’ suggests that investors should remain vigilant about valuation risks and sector cyclicality. Commodity prices remain susceptible to global economic shifts, geopolitical tensions, and supply-demand imbalances, which could impact Vedanta’s near-term performance.

For traders, the derivatives data points to a bullish bias, with fresh long positions likely being established. Long-term investors should monitor quarterly earnings, commodity price trends, and sector developments to gauge sustainability of the current momentum.

In summary, Vedanta Ltd. is currently at a pivotal juncture where strong market participation and technical indicators support further gains, but cautious optimism is warranted given recent rating adjustments and external risks.

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