Vedanta Ltd Sees Surge in Call Option Activity Ahead of January Expiry

Surge in Call Option Trading Highlights Investor Confidence

On 14 January 2026, Vedanta Ltd. (stock code: 801588) recorded substantial call option volumes, with the most active contracts clustered around strike prices ranging from ₹640 to ₹700. The underlying stock closed at ₹656.00, having touched a new 52-week and all-time high intraday price of ₹659.95, marking a 3.57% gain on the day. This price action reflects a robust uptrend, supported by the stock trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages.

Among the call options expiring on 27 January 2026, the strike price of ₹660 attracted the highest number of contracts traded, totalling 8,391 contracts with a turnover of ₹1473.50 lakhs and an open interest of 2,017 contracts. This indicates a strong bullish sentiment as investors anticipate the stock price to remain above this level by expiry.

Close behind, the ₹670 strike saw 4,735 contracts traded with a turnover of ₹614.77 lakhs and an open interest of 1,751 contracts. The ₹700 strike price also garnered significant attention, with 4,681 contracts traded and an open interest of 2,467, despite a relatively lower turnover of ₹253.01 lakhs. This suggests that some investors are positioning for a more aggressive upside move in Vedanta’s share price.

Market Cap and Mojo Score Reflect Strong Fundamentals

Vedanta Ltd. boasts a large market capitalisation of ₹2,49,131 crores, placing it firmly among the heavyweight stocks in the Non-Ferrous Metals industry. The company’s Mojo Score currently stands at 78.0, with a Mojo Grade of Buy, recently revised from a Strong Buy on 13 January 2026. This slight moderation in rating reflects a balanced view of the stock’s valuation and near-term risks, while still endorsing its growth potential.

The stock outperformed its sector by 0.63% on the day, with the Metal - Non Ferrous sector itself gaining 2.85%. Vedanta’s consecutive gains over the past four trading sessions have yielded a cumulative return of 9.04%, signalling sustained investor interest and positive momentum.

Open Interest and Turnover Patterns Indicate Strategic Positioning

The open interest data reveals that the ₹640 strike price call options have an open interest of 4,706 contracts, the highest among all strikes, with 4,311 contracts traded and a turnover of ₹1,113.98 lakhs. This suggests that many investors are hedging or speculating around this slightly out-of-the-money strike, expecting the stock to maintain or exceed this level by expiry.

Meanwhile, the ₹655 strike price options, with 4,450 contracts traded and a turnover of ₹874.07 lakhs, have a relatively low open interest of 616 contracts. This could indicate recent fresh buying interest or short-term speculative trades rather than established positions.

The combination of high turnover and open interest at multiple strike prices points to a layered bullish strategy, where investors are positioning for incremental gains across a range of price levels rather than a single target.

Technical and Fundamental Factors Supporting the Bullish Outlook

Vedanta’s technical indicators remain favourable, with the stock comfortably above all key moving averages, signalling strong upward momentum. The rising delivery volume of 88.21 lakh shares on 13 January 2026, up 42.08% against the five-day average, confirms heightened investor participation and conviction.

Additionally, the stock offers a healthy dividend yield of 3.61% at current prices, enhancing its appeal to income-focused investors. Liquidity remains robust, with the stock capable of handling trade sizes up to ₹18.62 crores based on 2% of the five-day average traded value, ensuring smooth execution for institutional and retail participants alike.

Investor Implications and Outlook

The pronounced call option activity in Vedanta Ltd. ahead of the 27 January expiry reflects a consensus expectation of continued price appreciation. The clustering of open interest and turnover at strikes above the current market price suggests that investors are positioning for a potential rally towards or beyond ₹700 in the near term.

However, the recent downgrade from Strong Buy to Buy by MarketsMOJO on 13 January 2026 indicates a cautious stance on valuation levels, urging investors to weigh the stock’s growth prospects against possible near-term volatility. The stock’s outperformance relative to the sector and Sensex, combined with strong fundamentals and liquidity, makes it a compelling candidate for both momentum traders and long-term investors.

Given the stock’s high dividend yield and improving delivery volumes, Vedanta Ltd. remains an attractive proposition within the Non-Ferrous Metals space. Investors should monitor option expiry dynamics closely, as they often provide early signals of market sentiment shifts and potential price inflection points.

Summary

Vedanta Ltd.’s recent surge in call option volumes, particularly at strike prices between ₹640 and ₹700, underscores a bullish market outlook supported by strong technicals and fundamental metrics. The stock’s new highs, rising investor participation, and solid dividend yield further reinforce its appeal. While the recent rating adjustment advises prudence, the overall market positioning suggests sustained optimism for Vedanta’s near-term performance.

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