Jindal Steel Ltd Sees Robust Call Option Activity Amid Bullish Momentum

Surge in Call Option Trading Highlights Bullish Positioning

Data from the derivatives segment reveals that Jindal Steel Ltd. (JINDALSTEL) witnessed heavy call option trading for contracts expiring on 27 January 2026. The most actively traded call options were at strike prices of ₹1,060 and ₹1,100, with 2,963 and 2,925 contracts traded respectively. The turnover for these strikes was substantial, amounting to ₹630.75 lakhs for the ₹1,060 strike and ₹336.01 lakhs for the ₹1,100 strike, underscoring strong market interest.

Open interest figures further reinforce this bullish stance, with 949 contracts open at the ₹1,060 strike and 951 at ₹1,100. Given the underlying stock price of ₹1,052.20, these strike prices suggest that traders are positioning for an upward move in the near term, anticipating the stock to breach these levels by the expiry date.

Technical Momentum Supports Positive Outlook

Jindal Steel’s stock price has been on a consistent upward trajectory, gaining 7.14% over the past three trading sessions. On 31 December 2025, the stock outperformed its sector by 0.87%, closing with a gain of 3.26%. It opened the day with a gap-up of 2.07% and touched an intraday high of ₹1,065, marking a 4.28% increase from the previous close.

Notably, the stock is trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained bullish momentum. This technical strength is complemented by rising delivery volumes, which surged by 62.7% to 8.16 lakh shares on 30 December compared to the five-day average, indicating increased investor conviction.

Sectoral and Market Context

The ferrous metals sector, encompassing steel, sponge iron, and pig iron, has gained 2.42% recently, reflecting broader positive sentiment in the industry. Jindal Steel’s market capitalisation stands at a robust ₹1,04,166 crore, categorising it as a large-cap stock with significant liquidity and institutional interest.

On the same trading day, the Sensex recorded a modest gain of 0.17%, while the sector index rose by 2.44%, highlighting Jindal Steel’s outperformance relative to the broader market and its peers.

Mojo Score Upgrade Reflects Improving Fundamentals

MarketsMOJO’s proprietary scoring system has upgraded Jindal Steel Ltd.’s Mojo Grade from Sell to Hold as of 11 November 2025, with a current Mojo Score of 57.0. This upgrade reflects an improvement in the company’s financial health and market positioning, although the stock remains in a cautious zone, warranting close monitoring.

The Market Cap Grade remains at 1, indicating the stock’s large-cap status but also suggesting limited room for rapid capital appreciation compared to mid or small caps. Investors should weigh the stock’s steady fundamentals against its valuation and sector dynamics.

Expiry Patterns and Investor Sentiment

The concentration of call option activity around the ₹1,060 and ₹1,100 strike prices for the January 2026 expiry suggests that traders expect the stock to test and potentially surpass these levels within the next month. The open interest data indicates that these positions are not merely speculative but are backed by significant capital commitment.

Such positioning often precedes a breakout or a sustained rally, especially when supported by strong volume and technical indicators, as seen in Jindal Steel’s recent price action. However, investors should remain vigilant for any sectoral headwinds or macroeconomic factors that could temper this optimism.

Liquidity and Trading Viability

Jindal Steel’s liquidity profile is robust, with the stock’s traded value supporting trade sizes up to ₹2.63 crore based on 2% of the five-day average traded value. This liquidity ensures that institutional and retail investors can enter or exit positions without significant price impact, an important consideration for active traders and option market participants.

Balancing Optimism with Caution

While the bullish call option activity and technical indicators paint a positive picture for Jindal Steel Ltd., investors should consider the broader economic environment and sector-specific risks. The ferrous metals industry is sensitive to global commodity prices, trade policies, and infrastructure demand cycles, all of which can influence stock performance.

Moreover, the Mojo Grade of Hold suggests that while the stock has improved from a Sell rating, it has yet to reach a strong buy status. This implies that investors should adopt a measured approach, possibly using options strategies to hedge or leverage their positions prudently.

Conclusion

Jindal Steel Ltd. is currently attracting significant attention in the options market, with heavy call option volumes at strike prices slightly above the current market level. This activity, combined with strong price momentum, rising delivery volumes, and an upgraded Mojo Grade, indicates growing bullish sentiment among investors.

However, given the stock’s proximity to its 52-week high (just 3.89% away) and the inherent volatility of the ferrous metals sector, investors should carefully analyse risk-reward dynamics before committing capital. The January 2026 expiry will be a key milestone to watch for confirmation of the anticipated upward move.

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