What to expect on Vedanta counter today

Mumbai: Anticipating dividend action in Vedanta over the weekend, traders on Friday bet big time on the stock’s F&O counter, resulting in open interest overshooting the market-wide position limit (MWPL) on the stock by a whopping 20.36 lakh shares and moving it into a derivatives ban for Monday.

The huge bets hint that the stock could witness sharp volatility on Monday. Interestingly, while the October expiry futures witnessed a 9% cut in open interest to 5.6 crore shares (6,200 shares make one lot), the November expiry figures saw a 51% jump in OI to 3.8 crore shares. Options factor in over 7% price move either side from Friday close of ₹104.5.

“Punters could use the intraday squaring off route in the cash market or some brokers could initiate fresh positions on derivatives for themselves or clients at the risk of paying a hefty penalty to the bourse for each violation,” said a broker requesting anonymity.