Call Option Activity Highlights
On 17 December 2025, Vedanta Ltd's call options with a strike price of ₹580 and expiry date 30 December 2025 emerged as the most actively traded contracts. A total of 12,608 contracts exchanged hands, generating a turnover of approximately ₹1326.68 lakhs. The open interest for these contracts stood at 3,777, indicating a substantial build-up of positions ahead of the expiry.
The underlying stock price was recorded at ₹580.20, closely aligned with the strike price of the most active calls, suggesting that market participants are positioning for potential upward movement or volatility around this level. This activity is notable given the stock's recent price trajectory and technical positioning.
Price Performance and Technical Context
Vedanta Ltd touched a new 52-week and all-time high of ₹583 during intraday trading, marking a 2.32% rise on the day. The stock has been on a consistent upward trend, registering gains over the past eight consecutive trading sessions, cumulatively delivering returns of 13.33% in this period. Despite underperforming its sector by 0.72% on the day, the stock remains above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling sustained bullish momentum.
The Non-Ferrous Metals sector itself recorded a gain of 2.48% on the same day, reflecting broader positive sentiment in the metals space. Vedanta’s market capitalisation stands at a substantial ₹2,23,049 crores, categorising it as a large-cap stock with significant liquidity and investor interest.
Investor Participation and Liquidity
Delivery volumes for Vedanta on 17 December reached 1.23 crore shares, representing a 38.6% increase compared to the five-day average delivery volume. This rise in delivery volume indicates heightened investor conviction and participation in the stock. Liquidity metrics suggest that the stock can comfortably handle trade sizes up to ₹25.3 crores based on 2% of the five-day average traded value, making it accessible for institutional and retail investors alike.
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Dividend Yield and Sector Comparison
Vedanta Ltd offers a dividend yield of 5.53% at the current price level, which is an attractive feature for income-focused investors. This yield is competitive within the Non-Ferrous Metals sector, which has been buoyed by rising commodity prices and improving demand fundamentals globally.
While the stock’s one-day return was 1.64%, it lagged behind the sector’s 2.78% gain and the Sensex’s 0.28% increase. This relative performance suggests that while Vedanta is participating in the sector’s upward movement, there may be short-term profit-taking or consolidation phases influencing its price action.
Expiry Patterns and Market Positioning
The concentration of call option activity at the ₹580 strike price with expiry at the end of December indicates that traders are positioning for potential price moves in the near term. The open interest of 3,777 contracts at this strike reflects a significant number of outstanding positions, which could influence price volatility as expiry approaches.
Such positioning often points to a market expectation of the stock maintaining or surpassing this level, with investors potentially hedging or speculating on further gains. The proximity of the strike price to the current market price also suggests that these options are near-the-money, which typically attract higher trading volumes due to their sensitivity to price changes.
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Outlook and Investor Considerations
Vedanta Ltd’s recent price action and option market activity reflect a market environment where bullish sentiment is prevailing. The stock’s ability to sustain levels above key moving averages and its new highs provide technical support for continued interest.
Investors should note the elevated open interest in near-the-money call options as a sign of speculative positioning or hedging strategies that could lead to increased volatility around the expiry date. Additionally, the stock’s dividend yield and liquidity profile make it a viable candidate for both growth and income-oriented portfolios within the metals sector.
However, the slight underperformance relative to the sector on the day suggests that investors remain cautious, possibly awaiting further clarity on commodity price trends or broader market cues before committing additional capital.
Overall, Vedanta Ltd’s market dynamics as observed through option activity and price behaviour provide valuable insights into investor expectations and potential near-term price movements.
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