Jindal Steel Ltd Sees Sharp Open Interest Surge Amidst Positive Price Momentum

Open Interest and Volume Dynamics

The latest data reveals that Jindal Steel’s open interest in futures and options contracts rose sharply by 2,874 contracts, a 15.07% increase from the previous figure of 19,073 to 21,947. This notable expansion in OI accompanies a daily volume of 14,083 contracts, underscoring active participation from traders and institutional investors alike.

In monetary terms, the futures segment alone accounted for a value of approximately ₹22,472.9 lakhs, while the options segment exhibited an enormous notional value of ₹9,041.8 crores, culminating in a total derivatives value of ₹24,498.5 lakhs. Such figures highlight the substantial liquidity and interest in Jindal Steel’s derivatives, making it a focal point for market participants.

Price Action and Technical Positioning

On the price front, Jindal Steel has been on an upward trajectory, gaining 3.44% over the past two consecutive sessions. The stock’s intraday high of Rs 1,267.5 represents a fresh 52-week peak, signalling strong bullish momentum. It is trading comfortably above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — which collectively indicate a sustained uptrend.

Compared to its sector peers in Steel, Sponge Iron, and Pig Iron, which collectively gained 2% on the day, Jindal Steel’s 1.95% rise is broadly in line, reflecting sector-wide strength. The Sensex, by contrast, posted a modest 0.18% gain, underscoring the relative outperformance of the ferrous metals segment.

Investor Participation and Liquidity Considerations

Despite the positive price and OI trends, investor participation in terms of delivery volumes has shown a decline. On 24 Feb 2026, delivery volume stood at 3.93 lakh shares, down 23.42% against the five-day average delivery volume. This suggests that while speculative interest in derivatives is rising, actual shareholding by investors may be moderating, possibly reflecting short-term trading strategies rather than long-term accumulation.

Liquidity remains adequate for sizeable trades, with the stock’s average traded value supporting a trade size of approximately ₹2.11 crore based on 2% of the five-day average traded value. This ensures that institutional investors can enter or exit positions without significant market impact.

Market Positioning and Directional Bets

The surge in open interest, coupled with rising prices, suggests that market participants are increasingly positioning for a bullish outlook on Jindal Steel. The 15.07% increase in OI indicates fresh long positions being initiated or short positions being covered, both of which are consistent with upward price momentum.

Given the stock’s strong technical setup and sectoral tailwinds, traders appear to be making directional bets anticipating further gains. The futures value of ₹224.7 crore and the massive options notional value reflect significant hedging and speculative activity, with call options likely dominating given the recent price highs.

However, the decline in delivery volumes signals caution among long-term investors, who may be adopting a wait-and-watch approach amid broader market uncertainties. This divergence between derivatives activity and cash market participation is a key factor to monitor in the coming sessions.

Fundamental and Market Context

Jindal Steel Ltd. operates within the ferrous metals industry and is classified as a mid-cap stock with a market capitalisation of ₹1,27,113 crore. The company’s Mojo Score stands at 58.0, reflecting a Hold rating, an upgrade from a previous Sell rating as of 11 Nov 2025. This improvement in grading indicates a more favourable outlook based on recent performance and market conditions.

The stock’s market cap grade is 2, suggesting moderate size and liquidity relative to peers. The recent price gains and open interest expansion may be viewed as validation of the company’s improving fundamentals and investor confidence.

Outlook and Investor Takeaways

Jindal Steel’s recent open interest surge and price breakout signal a positive near-term outlook, supported by strong sectoral momentum and improving technical indicators. The stock’s ability to sustain above key moving averages and its new 52-week high reinforce the bullish narrative.

Investors should, however, remain mindful of the declining delivery volumes, which suggest that the rally may be driven more by speculative and short-term trading rather than broad-based accumulation. Monitoring changes in open interest alongside price action will be crucial to gauge the sustainability of the current trend.

Given the Hold rating and Mojo Score of 58.0, investors may consider a cautious approach, balancing exposure with risk management strategies. The stock’s liquidity profile supports active trading, but the mid-cap status warrants attention to volatility and market developments.

Overall, Jindal Steel Ltd. presents an intriguing case of rising derivatives interest aligned with positive price momentum, offering potential opportunities for traders and investors who closely track market positioning and sector dynamics.

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