Open Interest and Volume Dynamics
On 23 Jan 2026, Jindal Steel's open interest (OI) in futures and options contracts rose sharply by 4,606 contracts, a 14.41% increase from the previous OI of 31,968. This brought the total OI to 36,574, reflecting heightened trader engagement and possibly fresh positioning ahead of upcoming market catalysts. The volume for the day stood at 66,641 contracts, underscoring robust trading activity.
The futures value traded was approximately ₹96,783.7 lakhs, while the options segment saw an astronomical notional value of ₹36,206.3 crores, culminating in a combined derivatives turnover of ₹1,01,408.1 lakhs. Such elevated figures indicate strong liquidity and active hedging or speculative interest in Jindal Steel’s stock.
Price Action and Technical Strength
Jindal Steel has been on an upward trajectory, gaining 3.61% over the past three consecutive sessions. The stock touched an intraday high of ₹1,104 on the day, marking a fresh 52-week peak and outperforming its ferrous metals sector peers by 0.48%. Notably, the stock is trading above all major moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a strong bullish trend and technical resilience.
Investor participation has also intensified, with delivery volumes on 22 Jan reaching 9.21 lakh shares, a 35.5% increase over the five-day average delivery volume. This suggests that market participants are not only trading actively but also holding positions, reflecting confidence in the stock’s medium-term prospects.
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Market Positioning and Directional Bets
The surge in open interest, coupled with rising volumes and price appreciation, suggests that traders are increasingly bullish on Jindal Steel. The 14.41% increase in OI indicates fresh long positions or rollovers of existing contracts, reflecting confidence in further upside potential. Given the stock’s outperformance relative to the sector and its technical strength, market participants appear to be positioning for sustained gains.
However, the day’s price change was marginally negative at -0.03%, indicating some profit-booking or short-term volatility despite the broader bullish trend. This mixed price action alongside rising OI often points to a consolidation phase where market participants are recalibrating their positions before a possible breakout.
Fundamental and Market Context
Jindal Steel Ltd. operates within the ferrous metals industry, a sector sensitive to global commodity cycles and domestic infrastructure demand. The company holds a large-cap status with a market capitalisation of ₹1,11,868 crores, underscoring its significant presence in the market. Its Mojo Score currently stands at 54.0 with a Hold grade, upgraded from Sell on 11 Nov 2025, reflecting improving fundamentals and market sentiment.
Despite the recent upgrade, the stock’s market cap grade remains at 1, indicating it is among the larger, more stable companies in its sector. This stability, combined with the recent technical momentum, makes Jindal Steel an attractive candidate for investors seeking exposure to the ferrous metals space with a balanced risk profile.
Liquidity and Trading Viability
Liquidity remains robust, with the stock’s traded value supporting a trade size of approximately ₹3.59 crores based on 2% of the five-day average traded value. This ensures that institutional and retail investors can enter and exit positions without significant price impact, an important consideration for derivatives traders and long-term investors alike.
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Outlook and Investor Considerations
With the derivatives market signalling increased bullish positioning and the stock’s technical indicators firmly positive, Jindal Steel appears poised for further gains in the near term. Investors should monitor open interest trends closely, as sustained increases often precede significant price moves. Additionally, the stock’s ability to maintain above key moving averages and its rising delivery volumes suggest strong underlying demand.
Nevertheless, the marginal day-on-day price dip and the ferrous metals sector’s inherent cyclicality warrant cautious optimism. Investors should consider broader macroeconomic factors such as steel demand, raw material costs, and global trade dynamics when assessing the stock’s medium to long-term prospects.
Overall, Jindal Steel’s recent upgrade to a Hold rating by MarketsMOJO, combined with its improving market positioning and liquidity, makes it a stock worth watching for both derivatives traders and equity investors seeking exposure to India’s ferrous metals industry.
Summary
Jindal Steel Ltd. has demonstrated a significant surge in derivatives open interest, reflecting increased market confidence and active positioning. The stock’s technical strength, rising volumes, and fresh 52-week highs underpin a bullish outlook, while its large-cap status and improving Mojo Grade provide fundamental support. Investors should remain attentive to evolving market dynamics and consider Jindal Steel as a key player within the ferrous metals sector’s growth narrative.
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