Jindal Steel Gains 9.48%: 7 Key Factors Driving the Week’s Rally

29 December 2025: Open Interest Surge Signals Renewed Market Interest

Jindal Steel Ltd began the week with a notable 14.16% increase in open interest in its derivatives segment, rising to 43,148 contracts. This surge accompanied a 0.38% price gain to Rs.990.20, outperforming the Sensex which declined 0.41% that day. The stock’s intraday high of Rs.1,010.6 marked a 2.44% gain, signalling a tentative shift in momentum after prior declines.

Despite the derivatives activity, delivery volumes in the cash segment declined sharply by 45.23% compared to the five-day average, indicating cautious investor participation. Technically, the stock remained above its 200-day moving average but below shorter-term averages, reflecting mixed momentum. The substantial options turnover of ₹20,950 crores highlighted active hedging and speculative positioning amid sectoral uncertainties.

30 December 2025: Intraday High of Rs.1,024.6 on 3.31% Surge

The stock continued its upward trajectory on 30 December, surging 3.11% to close at Rs.1,021.00 and hitting an intraday high of Rs.1,024.6, a 3.47% increase from the previous close. This performance outpaced the ferrous metals sector by 2.38% and the Sensex which was nearly flat, underscoring Jindal Steel’s relative strength.

Technically, the stock traded above its 5-day, 20-day, and 200-day moving averages, signalling short- and long-term momentum, though resistance remained at the 50-day and 100-day averages. The two-day cumulative gain of 3.57% reflected growing investor confidence, supported by a Mojo Score upgrade to 57.0 and a 'Hold' rating from MarketsMOJO.

31 December 2025: Robust Trading and Intraday High of Rs.1,065

On the final trading day of 2025, Jindal Steel Ltd demonstrated strong intraday strength, surging 3.9% to an intraday high of Rs.1,065 and closing near this peak. This gain outperformed the ferrous metals sector’s 2.12% advance and the Sensex’s modest 0.22% rise. The stock’s weighted average intraday volatility was elevated at 29.48%, reflecting active trading and sharp price movements.

Trading volumes were robust, with 15,55,346 shares exchanging hands, translating into a traded value of ₹16,465.05 lakhs. Delivery volumes surged 62.7% to 8.16 lakh shares on 30 December, signalling strong institutional participation. The stock traded comfortably above all key moving averages, reinforcing a sustained bullish trend. Despite this, the Mojo Grade remained at 'Hold', reflecting cautious optimism.

31 December 2025: Heavy Call and Put Option Activity Highlights Mixed Sentiment

Derivatives activity on 31 December was particularly notable, with Jindal Steel emerging as one of the most actively traded stocks in both call and put options. Call option volumes were concentrated at the ₹1,060 and ₹1,100 strike prices, with turnovers of ₹630.75 lakhs and ₹336.01 lakhs respectively, indicating bullish positioning ahead of the January 2026 expiry.

Simultaneously, put options saw heavy activity at the ₹1,000 strike price, with 1,172 contracts traded and a turnover of ₹69.8 lakhs. This suggests a hedging strategy or cautious bearish bets amid the stock’s proximity to its 52-week high of Rs.1,098. The underlying stock closed at Rs.1,052.90, maintaining a strong 3.26% gain on the day.

The surge in open interest by 13.1% to 32,690 contracts further confirmed fresh long positions being established, supported by a 7.14% cumulative gain over three consecutive sessions. The stock’s technical positioning above all major moving averages and strong liquidity profile underpin this momentum.

1 & 2 January 2026: Continued Gains and Week Close at Rs.1,080.00

Jindal Steel maintained its positive momentum into the new year, rising 1.31% on 1 January to Rs.1,067.45 and adding a further 1.18% on 2 January to close the week at Rs.1,080.00. These gains outpaced the Sensex’s respective increases of 0.14% and 0.81%, reinforcing the stock’s outperformance.

Volumes remained healthy, with 68,013 shares traded on 2 January. The stock’s steady advance above key moving averages and proximity to its 52-week high underscore sustained investor interest. The week’s cumulative 9.48% gain contrasts sharply with the Sensex’s 1.35% rise, highlighting Jindal Steel’s strong relative performance amid a recovering ferrous metals sector.

Key Takeaways

Positive Signals: Jindal Steel’s 9.48% weekly gain significantly outperformed the Sensex’s 1.35%, supported by strong derivatives open interest growth, consistent intraday highs, and rising delivery volumes indicating institutional accumulation. The stock’s technical positioning above all major moving averages and proximity to its 52-week high reflect sustained bullish momentum. The upgrade to a 'Hold' Mojo Grade with a score of 57.0 signals stabilising fundamentals and cautious optimism.

Cautionary Notes: Despite strong price gains, heavy put option activity at the ₹1,000 strike price suggests investors are hedging against potential near-term corrections. Delivery volumes showed mixed trends early in the week, and the stock faces resistance near its 52-week high of Rs.1,098. The 'Hold' rating advises measured exposure amid sectoral volatility and macroeconomic uncertainties affecting raw material costs and demand.

Conclusion

Jindal Steel Ltd’s week was marked by robust price appreciation, strong derivatives market participation, and improving technical indicators, positioning it as a standout performer in the ferrous metals sector. The stock’s 9.48% gain over five trading sessions, coupled with active call and put option markets, reflects a nuanced investor sentiment balancing bullish momentum with prudent risk management. While the stock’s proximity to its 52-week high presents a key resistance level, sustained institutional interest and positive sectoral trends provide a supportive backdrop. Investors should continue monitoring open interest trends, delivery volumes, and sector developments to gauge the sustainability of this rally as the new year unfolds.

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