Jindal Steel Ltd Sees Sharp Open Interest Surge Amid Bullish Momentum

Open Interest and Volume Dynamics

On 28 Jan 2026, Jindal Steel’s open interest in futures and options contracts rose sharply by 2,417 contracts, a 10.99% increase from the previous day’s 22,002 to 24,419. This rise in OI was accompanied by a volume of 23,907 contracts, indicating strong participation from traders and investors. The futures value stood at ₹41,261.51 lakhs, while the options segment contributed a substantial ₹12,939.26 crores, culminating in a total derivatives value of approximately ₹44,997.60 lakhs.

The underlying stock price also reflected this bullish momentum, hitting a new 52-week high of ₹1,120.5 during intraday trading, marking a 3.68% gain on the day. This price movement outperformed the ferrous metals sector, which gained 2.02%, and the broader Sensex, which rose a modest 0.28%. Jindal Steel’s outperformance by 0.79% relative to its sector highlights its growing appeal among market participants.

Market Positioning and Technical Indicators

Jindal Steel’s stock has been on a steady upward trajectory, recording gains for two consecutive days with a cumulative return of 4.48%. The stock is trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a robust technical setup. Such alignment of moving averages often attracts momentum traders and institutional investors, reinforcing the bullish sentiment.

Investor participation has also intensified, with delivery volumes on 27 Jan reaching 9.92 lakh shares, a 37.09% increase over the five-day average delivery volume. This rise in delivery volume suggests that investors are not merely trading on speculation but are willing to hold the stock, indicating confidence in the company’s fundamentals and outlook.

Implications of the Open Interest Surge

The 11% increase in open interest alongside rising prices and volumes typically indicates fresh long positions being established, reflecting bullish market sentiment. Traders appear to be positioning for further upside in Jindal Steel’s shares, possibly anticipating positive developments in the ferrous metals industry or company-specific catalysts.

Given the stock’s large-cap status with a market capitalisation of ₹1,10,476 crores, such a surge in derivatives activity is significant. It suggests that institutional investors and hedge funds may be increasing their exposure, leveraging derivatives to optimise their risk-return profiles.

Moreover, the stock’s Mojo Score has improved to 61.0, upgrading its Mojo Grade from Sell to Hold as of 11 Nov 2025. This upgrade reflects a better risk-reward balance and improved fundamentals, which may be encouraging investors to build positions.

Sectoral Context and Comparative Performance

The ferrous metals sector has been gaining traction, with the Steel/Sponge Iron/Pig Iron segment rising 2.02% on the day. Jindal Steel’s outperformance relative to the sector and Sensex underscores its leadership position and resilience amid sectoral volatility.

Liquidity metrics further support the stock’s attractiveness. With a trading liquidity sufficient to handle trade sizes of up to ₹4.35 crores based on 2% of the five-day average traded value, Jindal Steel offers ample room for large investors to enter or exit positions without significant price impact.

Potential Directional Bets and Investor Outlook

The combination of rising open interest, increasing volumes, and a new 52-week high suggests that market participants are positioning for a sustained rally in Jindal Steel. The stock’s technical strength, coupled with improving fundamentals and sector tailwinds, supports this view.

However, investors should remain cautious of potential volatility given the ferrous metals sector’s sensitivity to global commodity prices, trade policies, and demand fluctuations. The recent upgrade to a Hold rating by MarketsMOJO reflects a balanced outlook, acknowledging both the upside potential and inherent risks.

For traders, the current derivatives activity offers opportunities to capitalise on momentum while managing risk through options strategies. The elevated open interest in options contracts, valued at over ₹12,939 crores, indicates active hedging and speculative interest, which could lead to increased volatility in the near term.

Conclusion

Jindal Steel Ltd.’s sharp increase in open interest and robust price performance highlight a growing bullish consensus among investors and traders. The stock’s leadership in the ferrous metals sector, improved Mojo Grade, and strong technical indicators make it a key name to watch in the large-cap space.

While the market positioning suggests optimism, prudent investors should monitor sector developments and global commodity trends closely. The current environment offers a compelling case for selective accumulation, supported by strong liquidity and institutional interest.

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