S.A.L Steel Ltd Gains 18.68%: 5 Key Factors Driving the Week’s Rally

2 February 2026: Week Opens on a Weak Note

S.A.L Steel Ltd began the week at Rs.37.74, down 2.23% from the previous close, underperforming the Sensex which declined 1.03% to 35,814.09. The stock traded on moderate volume of 29,479 shares, reflecting cautious sentiment amid broader market weakness. This initial dip set the stage for a strong rebound in the following sessions.

3 February 2026: Upper Circuit Triggered on Robust Buying Momentum

The stock surged to hit its upper circuit limit of 5%, closing at Rs.39.59, a 4.90% gain on the day. This move outpaced the Sensex’s 2.63% rise and the ferrous metals sector’s 2.15% gain, signalling renewed investor confidence. Despite moderate volume of 32,101 shares, the price action was supported by strong demand that overwhelmed supply, triggering a regulatory freeze on further buying. Technical indicators showed the stock closing above its 5-day, 100-day, and 200-day moving averages, though it remained below the 20-day and 50-day averages, suggesting short-term bullish momentum with some medium-term resistance.

4 February 2026: Sustained Buying Pushes Stock to Upper Circuit Again

Continuing its upward trajectory, S.A.L Steel Ltd hit the upper circuit once more, closing at Rs.41.56, up 4.98%. This gain outperformed the ferrous metals sector’s 1.59% and the Sensex’s modest 0.37% increase. Volume rose to 40,453 shares, with delivery volumes increasing by 13.55%, indicating growing investor participation. The stock traded above all key moving averages, signalling strong bullish momentum across multiple timeframes. The regulatory freeze again halted further buying, leaving unfilled demand that could support future gains.

5 February 2026: Third Consecutive Upper Circuit Amid Strong Buying

S.A.L Steel Ltd maintained its momentum, hitting the upper circuit again to close at Rs.43.63, a 4.98% gain. This rally was achieved despite the ferrous metals sector declining 0.83% and the Sensex falling 0.47%, highlighting the stock’s relative strength. The volume was modest at 39,488 shares, but delivery volume surged 21.68% above the five-day average, signalling increased investor conviction. The stock traded above all major moving averages, reinforcing the bullish technical outlook. The price closed just 2.1% below its 52-week high of Rs.44.24, indicating proximity to a key resistance level.

6 February 2026: New 52-Week and All-Time High Achieved

On the final trading day of the week, S.A.L Steel Ltd reached a new 52-week and all-time high of Rs.45.81, gaining 5.00%. This performance outpaced the ferrous metals sector by 6.18% and the Sensex, which was down 0.21%. The stock opened sharply higher and maintained this level throughout the session, supported by a regulatory freeze triggered by the upper circuit hit. Volume was lower at 30,261 shares, but delivery volume on the previous day had surged 40%, indicating strong investor participation. The stock’s technical position remained robust, trading above all key moving averages and reflecting sustained bullish momentum.

Key Takeaways from the Week

Strong Price Momentum: The stock’s 18.68% weekly gain dwarfed the Sensex’s 1.51%, driven by four consecutive days of upper circuit hits and culminating in a new all-time high.

Technical Strength: Consistent trading above all major moving averages and bullish technical indicators supported the rally, attracting momentum traders and investors.

Volume and Delivery Trends: While overall volumes remained moderate, delivery volumes increased notably, signalling genuine investor participation rather than purely speculative trading.

Fundamental Upgrade: The MarketsMOJO upgrade from Sell to Hold on 4 February reflected improving technical and financial trends, including a positive quarterly PAT and operational efficiency gains, though long-term fundamentals remain mixed.

Valuation and Risks: Despite strong price gains, the stock remains a micro-cap with high leverage and valuation concerns, warranting cautious monitoring of debt levels and earnings consistency.

Sector Outperformance: The stock outperformed the ferrous metals sector on multiple days, highlighting company-specific strength amid a mixed industry backdrop.

Regulatory Freeze Impact: Multiple upper circuit hits triggered trading halts, indicating strong latent demand but also potential volatility once restrictions ease.

Conclusion

S.A.L Steel Ltd’s remarkable 18.68% weekly gain, driven by sustained upper circuit hits and culminating in a new all-time high of Rs.45.81, underscores a period of strong bullish momentum and renewed investor interest. The MarketsMOJO upgrade to Hold reflects improving technical and financial signals, including a positive quarterly profit and operational efficiencies, though the company’s high leverage and valuation challenges temper enthusiasm. The stock’s outperformance relative to the Sensex and its sector highlights selective strength within the ferrous metals space, but investors should remain vigilant given the micro-cap’s inherent volatility and regulatory trading halts. Monitoring volume trends, debt metrics, and sector developments will be crucial to assess whether this rally can be sustained beyond technical triggers.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →