Jindal Steel Ltd Sees Sharp Open Interest Surge Amid Strong Price Momentum

Open Interest and Volume Dynamics

On 29 Jan 2026, Jindal Steel’s open interest (OI) in derivatives rose sharply by 3,331 contracts, a 13.9% increase from the previous day’s 23,957 to 27,288. This notable expansion in OI was accompanied by a robust volume of 34,437 contracts, underscoring active trading interest. The futures value stood at ₹50,831.31 lakhs, while the options segment contributed a staggering ₹20,496.07 crores, culminating in a total derivatives value of ₹57,448.11 lakhs. Such figures reflect a strong commitment from market participants, potentially positioning for further price movements.

Price Performance and Technical Strength

Jindal Steel’s underlying stock price has mirrored this optimism, hitting a new 52-week high of ₹1,165.20 during intraday trading, marking a 4.09% gain on the day. The stock has outperformed its ferrous metals sector peers by 1.2% and the broader Sensex by 2.59% on the same day. Over the past three consecutive sessions, Jindal Steel has delivered an impressive 8.15% return, signalling sustained buying interest.

Technically, the stock is trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — indicating a strong uptrend. The rising delivery volume of 13.3 lakh shares on 28 Jan, which surged 61.92% over the 5-day average, further confirms increased investor participation and confidence in the stock’s prospects.

Market Positioning and Directional Bets

The sharp rise in open interest alongside increasing volumes typically points to fresh positions being established rather than old ones being squared off. This suggests that traders and institutional investors are building directional bets, likely bullish given the concurrent price appreciation and technical strength. The ferrous metals sector, which has been under pressure earlier in the year, appears to be witnessing a revival, with Jindal Steel leading the charge.

Market participants may be anticipating favourable developments such as improved steel demand, easing raw material costs, or positive earnings outlooks. The company’s large-cap status, with a market capitalisation of ₹1,16,775 crore, adds to its appeal as a relatively stable yet growth-oriented investment within the sector.

Mojo Score Upgrade Reflects Improving Fundamentals

Reflecting the recent positive momentum, MarketsMOJO upgraded Jindal Steel’s Mojo Grade from Sell to Hold on 11 Nov 2025, with a current Mojo Score of 61.0. This upgrade signals a stabilisation in the company’s fundamentals and market sentiment. Although the grade remains a Hold, the improvement from a Sell rating indicates that the stock is gaining favour among analysts and investors alike.

The company’s Market Cap Grade remains at 1, consistent with its large-cap stature, underscoring its significance in the ferrous metals sector. The stock’s liquidity profile is also robust, with a 5-day average traded value supporting trade sizes up to ₹4.97 crore, making it accessible for institutional and retail investors.

Sectoral and Broader Market Context

Jindal Steel’s outperformance relative to the ferrous metals sector, which recorded a 1.51% gain on the day, and the Sensex’s modest 0.38% rise, highlights its leadership within the segment. The ferrous metals industry has been navigating a complex environment marked by fluctuating raw material prices and global demand uncertainties. Jindal Steel’s ability to sustain gains and attract derivative market interest suggests it is well-positioned to capitalise on any sectoral recovery.

Investors should note that while the open interest surge and price action are encouraging, the Mojo Grade of Hold advises a cautious approach. Monitoring upcoming quarterly results, commodity price trends, and global steel demand indicators will be crucial for assessing the sustainability of this rally.

Investor Takeaway

The recent surge in open interest and volume in Jindal Steel’s derivatives market, combined with its strong price performance and technical indicators, points to a growing bullish consensus. The stock’s ability to set new 52-week highs and maintain momentum above key moving averages suggests that investors are positioning for further upside.

However, the Hold rating from MarketsMOJO and the company’s current Mojo Score of 61.0 indicate that while the outlook is improving, investors should remain vigilant. Factors such as global steel demand fluctuations, input cost volatility, and broader macroeconomic conditions could influence the stock’s trajectory.

For those considering exposure to the ferrous metals sector, Jindal Steel offers a compelling case as a large-cap leader with improving fundamentals and market positioning. Yet, prudent portfolio management and diversification remain essential to navigate the sector’s inherent cyclicality.

Conclusion

Jindal Steel Ltd.’s recent open interest surge in derivatives is a clear signal of increased market engagement and directional bets favouring the stock. Supported by strong price gains, rising delivery volumes, and an upgraded Mojo Grade, the company is emerging as a key player in the ferrous metals sector’s recovery narrative. Investors should continue to monitor derivative activity and fundamental developments closely to capitalise on potential opportunities while managing risks effectively.

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