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

Surge in Call Option Trading Highlights Investor Confidence

On 23 January 2026, Vedanta Ltd. (stock code: 801588) emerged as the most active stock in call options trading, with two strike prices dominating market attention. The 690 strike call options recorded 4,925 contracts traded, generating a turnover of ₹423.08 lakhs and an open interest of 2,781 contracts. Meanwhile, the 700 strike calls saw even higher open interest at 3,775 contracts, with 4,947 contracts traded and a turnover of ₹243.49 lakhs. These figures reflect a robust appetite for bullish bets, as the underlying stock price hovered at ₹690.10, just 0.51% shy of its 52-week high of ₹694.

The concentration of activity around the 690 and 700 strike prices suggests that traders anticipate the stock to sustain or surpass these levels by expiry. The sizeable open interest at these strikes also indicates that many investors are holding onto their positions, expecting further upside potential in the near term.

Price Performance and Technical Indicators Support Positive Outlook

Vedanta’s recent price action has been encouraging. The stock has gained for three consecutive sessions, delivering a cumulative return of 2.78% over this period. Despite underperforming its sector on the day by 2.03%, Vedanta remains well-positioned above all key moving averages — including the 5-day, 20-day, 50-day, 100-day, and 200-day averages — signalling sustained upward momentum.

The Non-Ferrous Metals sector itself has advanced by 4.18%, reflecting broader strength in metal prices and demand fundamentals. Vedanta’s market capitalisation stands at a substantial ₹2,70,110.06 crores, categorising it firmly as a large-cap stock with strong liquidity. The stock’s delivery volume on 22 January was 1.01 crore shares, marking a 4.28% increase over its five-day average, further indicating rising investor participation.

Mojo Score and Rating Reflect Strong Buy Sentiment

Vedanta’s MarketsMOJO score currently stands at 78.0, categorised as a ‘Buy’ grade. This represents a slight downgrade from its previous ‘Strong Buy’ rating assigned on 13 January 2026, reflecting a cautious but still optimistic stance by analysts. The downgrade may be attributed to short-term sector volatility or profit-booking pressures, but the overall fundamentals remain intact.

The company’s market cap grade is 1, indicating its status as a large-cap stock with significant market presence and liquidity. Investors should note the stock’s attractive dividend yield of 3.39%, which adds to its appeal as a value proposition in the metals space.

Expiry Patterns and Strike Price Analysis

The expiry date of 27 January 2026 is fast approaching, and the concentration of call option activity at the 690 and 700 strike prices suggests that traders are positioning for a potential breakout above these levels. The open interest data reveals that the 700 strike has a higher number of outstanding contracts, signalling a stronger conviction that the stock will breach this psychological resistance.

Turnover figures also highlight the 690 strike as a key battleground, with nearly ₹4.23 crores in traded premium, indicating active trading and hedging strategies. The underlying stock price being almost at the 690 level further supports the likelihood of these strikes being pivotal in the coming days.

Sector Context and Comparative Performance

While Vedanta has underperformed the Non-Ferrous Metals sector by 2.03% on the day, the sector’s 4.18% gain reflects strong demand fundamentals, driven by global commodity price trends and supply constraints. Vedanta’s ability to maintain gains above its moving averages and near its 52-week high suggests resilience amid sector rotation and profit-taking.

Investors should also consider the stock’s liquidity profile, which supports sizeable trade sizes up to ₹28.06 crores based on 2% of the five-day average traded value. This liquidity is crucial for institutional investors and traders looking to execute large positions without significant market impact.

Investor Takeaway: Bullish Positioning with Cautious Optimism

Vedanta Ltd.’s active call option market and solid price performance indicate a bullish sentiment among traders and investors. The proximity to its 52-week high and sustained gains above key moving averages reinforce the stock’s technical strength. However, the slight downgrade in Mojo grade from ‘Strong Buy’ to ‘Buy’ suggests that investors should remain vigilant to sector dynamics and broader market conditions.

With the 27 January expiry date imminent, the 690 and 700 strike calls will be critical levels to watch. A decisive move above these strikes could trigger further upside momentum, while failure to breach may lead to consolidation or profit-taking. The stock’s high dividend yield and large-cap status provide additional support for medium to long-term investors seeking exposure to the metals sector.

Overall, Vedanta Ltd. remains a compelling option for investors looking to capitalise on the ongoing recovery in non-ferrous metals, backed by strong fundamentals, liquidity, and positive market positioning.

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