Open Interest and Volume Dynamics
The latest data reveals that open interest (OI) in Jindal Steel’s futures and options contracts rose by 2,011 contracts, a 10.54% increase from the previous figure of 19,073 to 21,084. This uptick in OI is accompanied by a daily volume of 9,801 contracts, indicating robust trading activity. The futures segment alone accounted for a value of approximately ₹14,470 lakhs, while the options segment’s notional value stood at an impressive ₹6,412 crores, culminating in a total derivatives value of ₹15,935 lakhs.
Such a significant rise in OI alongside healthy volume suggests fresh positions are being established rather than existing ones being squared off. This pattern often points to a strengthening trend, with traders positioning themselves for further price movement.
Price Action and Market Context
Jindal Steel’s underlying share price has been on an upward trajectory, gaining 3.39% over the past two consecutive sessions. On 25 Feb 2026, the stock touched an intraday high of Rs 1,259.9, marking a new 52-week peak. It is trading comfortably above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling sustained bullish momentum.
Comparatively, the broader Steel/Sponge Iron/Pig Iron sector gained 2.46% on the same day, while the Sensex rose by 0.64%, underscoring Jindal Steel’s outperformance within its industry group and the wider market. The stock’s market capitalisation stands at a substantial ₹1,27,113 crores, classifying it as a mid-cap entity with considerable liquidity and investor interest.
Investor Participation and Delivery Volumes
Despite the positive price and derivatives activity, delivery volumes have seen a decline. On 24 Feb 2026, delivery volume was recorded at 3.93 lakh shares, down 23.42% compared to the five-day average. This suggests that while short-term speculative interest is rising, longer-term investor participation through delivery-based trades has moderated.
Liquidity remains adequate, with the stock’s traded value supporting a trade size of approximately ₹2.11 crores based on 2% of the five-day average traded value. This ensures that institutional and retail investors can execute sizeable trades without significant market impact.
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Market Positioning and Directional Bets
The surge in open interest combined with rising prices and volumes indicates that market participants are increasingly bullish on Jindal Steel. The 10.54% increase in OI suggests fresh long positions are being built, reflecting expectations of further upside in the near term.
Given the stock’s outperformance relative to the sector and benchmark indices, traders appear to be positioning for continued strength in the ferrous metals space, possibly driven by improving demand fundamentals, favourable commodity prices, or positive earnings outlooks.
However, the decline in delivery volumes hints at a cautious stance among long-term investors, who may be awaiting clearer confirmation of sustained momentum before committing capital for the longer haul. This divergence between derivatives activity and delivery participation is a key factor to monitor for future trend validation.
Mojo Score and Analyst Ratings
Jindal Steel currently holds a Mojo Score of 58.0, categorised as a ‘Hold’ rating. This represents an upgrade from its previous ‘Sell’ grade as of 11 Nov 2025, reflecting improved market sentiment and fundamental outlook. The company’s market cap grade is 2, indicating a mid-cap status with moderate liquidity and institutional interest.
The upgrade in rating aligns with the recent price action and derivatives market behaviour, suggesting that analysts have recognised the stock’s improving technical and fundamental parameters. Investors should weigh this balanced view alongside sector trends and macroeconomic factors before making allocation decisions.
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Sector Outlook and Broader Implications
The ferrous metals sector has been gaining traction recently, supported by steady industrial demand and infrastructure spending. Jindal Steel’s performance is emblematic of this trend, with the stock’s gains outpacing the sector’s 2.46% rise on 25 Feb 2026.
Investors should consider the broader commodity price environment, global steel demand, and domestic policy developments when analysing Jindal Steel’s prospects. The company’s ability to maintain its momentum will depend on sustaining operational efficiencies and capitalising on favourable market conditions.
Conclusion
Jindal Steel Ltd.’s recent surge in open interest and volume in the derivatives market, coupled with a fresh 52-week high and improved analyst ratings, signals growing bullish sentiment. While short-term traders appear confident, the dip in delivery volumes suggests longer-term investors remain cautious. The stock’s outperformance relative to its sector and the Sensex highlights its potential as a key player in the ferrous metals space.
Market participants should closely monitor open interest trends, price action, and sector dynamics to gauge the sustainability of this rally. Given the current data, Jindal Steel presents a balanced opportunity for investors seeking exposure to mid-cap ferrous metals stocks with improving fundamentals and technical strength.
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