Vedanta Ltd Sees Surge in Call Option Activity Amid Bullish Market Sentiment

Robust Price Performance and Market Positioning

Vedanta Ltd. (NSE: VEDL) has outperformed its sector peers and the broader market in recent sessions. On 25 February 2026, the stock gained 3.95%, surpassing the Non-Ferrous Metals sector’s 1.38% rise and the Sensex’s modest 0.57% advance. This marks the second consecutive day of gains, with a cumulative return of 5.42% over this period. The stock touched an intraday high of ₹721, reflecting strong buying interest.

Technically, Vedanta is trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — indicating a sustained uptrend. Investor participation has also intensified, with delivery volumes on 24 February reaching 54.97 lakh shares, a 25% increase over the five-day average. This heightened liquidity supports the stock’s capacity to absorb larger trade sizes, with an estimated tradable value of ₹12.76 crore based on 2% of the five-day average traded value.

Additionally, Vedanta offers a healthy dividend yield of 3.31%, enhancing its appeal to income-focused investors amid the rally.

Call Option Activity Highlights Bullish Positioning

The most active call options for Vedanta are concentrated around the 700 and 720 strike prices, both expiring on 30 March 2026. The 720 strike call option saw the highest volume, with 4,630 contracts traded, generating a turnover of ₹1506.3 lakh. Open interest for this strike stands at 1,615 contracts, indicating sustained interest from option traders.

Meanwhile, the 700 strike call option recorded 2,858 contracts traded, with a turnover of ₹1249.6 lakh and an open interest of 2,749 contracts. The underlying stock price at the time was ₹716.9, positioning these strikes close to the money and suggesting traders are betting on further upside beyond current levels.

This concentrated activity in near-the-money call options with expiry just over a month away points to a strong bullish bias. Market participants appear confident in Vedanta’s ability to maintain momentum and potentially breach higher price levels before expiry.

Mojo Score and Analyst Ratings

Vedanta currently holds a Mojo Score of 68.0, categorised as a 'Hold' grade, a slight downgrade from its previous 'Buy' rating on 23 February 2026. This adjustment reflects a cautious stance amid recent volatility, despite the stock’s strong technicals and sector outperformance. The Market Cap Grade remains at 1, underscoring Vedanta’s status as a large-cap heavyweight with a market capitalisation of ₹2,80,941.83 crore.

Analysts note that while the stock’s fundamentals remain solid, including steady cash flows and dividend yield, near-term risks such as commodity price fluctuations and regulatory developments warrant close monitoring. The recent upgrade in call option activity, however, suggests that market participants are positioning for upside potential, possibly anticipating favourable earnings or sector tailwinds.

Sector Context and Comparative Performance

The Non-Ferrous Metals sector has shown resilience in early 2026, supported by improving global demand and supply constraints. Vedanta’s outperformance relative to its sector peers by 1.89% on the day highlights its leadership position and investor confidence. The stock’s liquidity and rising delivery volumes further enhance its attractiveness for institutional and retail investors alike.

Investors should note that the strike prices with the highest call option activity (700 and 720) are strategically placed just below and above the current market price, indicating a balanced mix of speculative and hedging strategies. The open interest figures suggest that traders are not only initiating new positions but also maintaining existing ones, reinforcing the bullish narrative.

Implications for Investors

For investors, the surge in call option volumes at near-the-money strikes with expiry in just over a month suggests a tactical bullish stance on Vedanta. This could be driven by expectations of positive quarterly results, improved commodity pricing, or strategic corporate developments. The stock’s strong technical positioning and rising delivery volumes support this outlook.

However, the recent downgrade to a 'Hold' rating by MarketsMOJO advises caution, signalling that while upside potential exists, risks remain. Investors should weigh these factors carefully, considering their risk tolerance and investment horizon.

Given Vedanta’s large-cap status and liquidity, it remains a viable candidate for both long-term portfolios and tactical trades. Monitoring option open interest and strike price concentrations can provide valuable insights into market sentiment and potential price targets.

Outlook and Conclusion

Vedanta Ltd. is currently at a pivotal juncture, with strong bullish signals emanating from the options market and solid price momentum. The concentration of call option activity at the 700 and 720 strike prices expiring on 30 March 2026 underscores investor optimism for further gains in the near term.

While the Mojo Score downgrade to 'Hold' reflects a tempered analyst view, the stock’s fundamentals, dividend yield, and sector leadership continue to support a positive medium-term outlook. Investors should remain vigilant to market developments and consider the evolving risk-reward profile as they position themselves ahead of the March expiry.

Key Data Summary:

• Stock Price (25 Feb 2026): ₹716.9
• Day’s High: ₹721 (3.73% gain)
• Market Cap: ₹2,80,941.83 crore (Large Cap)
• Mojo Score: 68.0 (Hold, downgraded from Buy on 23 Feb 2026)
• Dividend Yield: 3.31%
• Most Active Call Strikes: 700 (2,858 contracts), 720 (4,630 contracts)
• Expiry Date: 30 March 2026
• Open Interest: 700 strike - 2,749; 720 strike - 1,615
• Sector Outperformance: +1.89% vs Non-Ferrous Metals sector

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