Open Interest and Volume Dynamics
On 28 Jan 2026, Jindal Steel Ltd. (symbol: JINDALSTEL) recorded an open interest (OI) of 24,292 contracts, marking a 10.41% increase from the previous day’s 22,002 contracts. This rise of 2,290 contracts in OI is accompanied by a robust volume of 19,793 contracts, indicating fresh positions being established rather than mere unwinding of existing ones.
The futures segment alone accounted for a value of approximately ₹32,510 lakhs, while the options segment’s notional value stood at a staggering ₹10,887.27 crores. The combined derivatives turnover reached ₹35,662.08 lakhs, underscoring the stock’s liquidity and active participation among traders.
Such a pronounced increase in open interest alongside elevated volumes typically reflects growing conviction among market participants, often foreshadowing a sustained price move. In this case, the data points towards a bullish bias, supported by the stock’s recent price action.
Price Performance and Technical Strength
Jindal Steel Ltd. hit a new 52-week high of ₹1,120.5 intraday on the same day, gaining 3.68% from the previous close. The stock has outperformed its sector, which rose by 2.37%, and the broader Sensex, which advanced by 0.38%. Over the last two trading sessions, Jindal Steel has delivered a cumulative return of 4.77%, reflecting strong momentum.
Technically, the stock is trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a robust uptrend. This alignment of moving averages often attracts momentum traders and institutional investors, further reinforcing the bullish sentiment.
Investor participation has also surged, with delivery volumes reaching 9.92 lakh shares on 27 Jan, a 37.09% increase over the five-day average delivery volume. This rise in delivery volume indicates genuine accumulation rather than speculative trading, which bodes well for the stock’s medium-term prospects.
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Market Positioning and Directional Bets
The surge in open interest, combined with rising prices and volumes, suggests that traders are positioning for further upside in Jindal Steel Ltd. The increase in futures open interest by over 10% indicates fresh long positions being built, while the options market’s substantial notional value points to active hedging and speculative strategies.
Given the stock’s large market capitalisation of ₹1,10,476 crores and its classification as a large-cap ferrous metals company, institutional investors are likely playing a significant role in this positioning. The Mojo Score of 61.0 and an upgraded Mojo Grade from Sell to Hold on 11 Nov 2025 reflect improving fundamentals and market sentiment.
However, the Market Cap Grade remains at 1, indicating that while the company is large, there is room for growth and improvement in market perception. The stock’s outperformance relative to the sector and Sensex, along with rising delivery volumes, supports the thesis of sustained investor interest.
Sector-wise, the steel, sponge iron, and pig iron segment has gained 2.37%, with Jindal Steel outpacing this benchmark. This relative strength is a positive sign for investors looking to capitalise on cyclical upswings in the ferrous metals industry.
Liquidity and Trading Considerations
Liquidity remains a key factor for active traders and institutional participants. Jindal Steel’s average traded value over five days supports a trade size of approximately ₹4.35 crores based on 2% of average daily traded value, ensuring that large orders can be executed without significant price impact.
This liquidity, combined with the stock’s strong technical setup and rising open interest, makes it an attractive candidate for both short-term traders and long-term investors seeking exposure to the steel sector’s recovery.
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Outlook and Investor Takeaways
Jindal Steel Ltd.’s recent open interest surge and price breakout signal a positive shift in market sentiment. The stock’s technical strength, rising delivery volumes, and improved Mojo Grade from Sell to Hold indicate a stabilising fundamental outlook.
Investors should monitor the derivatives activity closely, as sustained increases in open interest alongside price gains often precede further upside. However, given the stock’s current valuation and sector dynamics, cautious optimism is warranted.
Market participants may consider Jindal Steel as a core holding within the ferrous metals space, balancing exposure with other sector peers and broader market trends. The company’s large-cap status and liquidity profile support both institutional and retail participation.
In summary, the combination of rising open interest, strong volume patterns, and technical momentum suggests that Jindal Steel Ltd. is attracting renewed investor interest, potentially setting the stage for further gains in the near term.
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