S.A.L Steel Ltd Surges to Upper Circuit, Hits All-Time High of Rs 45.49

Strong Price Momentum and Upper Circuit Trigger

On 6 Feb 2026, S.A.L Steel Ltd’s share price jumped by ₹2.16, a 4.98% increase, hitting the maximum permissible daily price band of 5%. The stock opened at ₹45.49 and traded exclusively at this price throughout the session, indicating a complete upper circuit lock. This price action reflects intense demand that overwhelmed available supply, resulting in a regulatory freeze on further upward movement for the day.

The stock’s intraday high and closing price were identical at ₹45.49, underscoring the absence of any price fluctuation once the circuit was hit. Such a scenario typically signals strong conviction among buyers and a scarcity of sellers willing to part with shares at prevailing levels.

Volume and Liquidity Insights

Trading volumes, while modest in absolute terms, showed a significant increase relative to recent averages. Total traded volume stood at 0.03964 lakh shares, with a turnover of ₹0.018 crore. Notably, the delivery volume on 5 Feb 2026 surged by 40% compared to the five-day average, reaching 39,490 shares. This rise in delivery volume indicates genuine investor interest and accumulation rather than speculative intraday trading.

Despite being a micro-cap stock with a market capitalisation of ₹476 crore, S.A.L Steel demonstrated sufficient liquidity to support trades of approximately ₹0.01 crore based on 2% of its five-day average traded value. This liquidity profile is favourable for investors seeking exposure to the ferrous metals sector without excessive price impact.

Outperformance Against Sector and Benchmark

S.A.L Steel’s 4.98% gain on 6 Feb 2026 starkly contrasted with the ferrous metals sector’s decline of 0.65% and the Sensex’s marginal fall of 0.41%. This relative strength highlights the stock’s emerging leadership within its industry segment and suggests positive sentiment driven by company-specific factors or broader sector tailwinds.

Moreover, the stock has recorded consecutive gains over the past five trading sessions, delivering a cumulative return of 22.91%. This sustained upward trajectory reflects improving fundamentals or market perception, warranting close attention from investors and analysts alike.

Technical Positioning and Moving Averages

Technically, S.A.L Steel is trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a strong bullish trend. This alignment of short-, medium-, and long-term averages confirms the stock’s upward momentum and reduces the likelihood of near-term reversals.

The stock’s breakout to a new all-time high further validates the strength of the current rally and may attract additional momentum-driven buying from traders and institutional investors.

Fundamental and Market Context

S.A.L Steel operates within the ferrous metals industry, a sector that has witnessed fluctuating demand due to global economic conditions and raw material price volatility. Despite these challenges, the company’s recent performance suggests resilience and potential for growth.

MarketsMOJO assigns S.A.L Steel a Mojo Score of 50.0 with a Mojo Grade of Hold, upgraded from a previous Sell rating on 4 Feb 2026. This upgrade reflects improved financial metrics and market sentiment, though the stock remains a micro-cap with inherent volatility and risk considerations.

The company’s market cap grade stands at 4, indicating a smaller market capitalisation relative to larger peers, which may limit institutional participation but also offers opportunities for nimble investors seeking growth in niche segments.

Investor Participation and Demand-Supply Dynamics

The surge to the upper circuit was accompanied by rising investor participation, as evidenced by the increased delivery volumes and sustained price gains. The absence of any price decline during the session suggests that sellers were scarce, and demand outstripped supply significantly.

Such unfilled demand often leads to regulatory circuit filters being triggered to prevent excessive volatility. In this case, the upper circuit freeze halted further price appreciation for the day, signalling strong bullish sentiment and potential for continued momentum in subsequent sessions.

Outlook and Considerations for Investors

While the recent price action is encouraging, investors should weigh the stock’s micro-cap status and sector-specific risks. The Hold rating from MarketsMOJO suggests a cautious approach, balancing the upside potential against valuation and liquidity constraints.

Given the stock’s strong technical positioning and positive momentum, it may appeal to investors with a higher risk tolerance seeking exposure to the ferrous metals space. However, monitoring volume trends and broader market conditions will be crucial to assess sustainability.

Summary

S.A.L Steel Ltd’s upper circuit hit on 6 Feb 2026 marks a significant milestone, reflecting strong buying pressure, rising investor interest, and a bullish technical setup. The stock’s outperformance relative to its sector and the Sensex, coupled with a recent upgrade in rating, positions it as a noteworthy contender in the ferrous metals micro-cap space.

However, investors should remain mindful of the stock’s liquidity profile and market cap constraints, balancing enthusiasm with prudent risk management. Continued monitoring of volume trends and price action will be essential to gauge the durability of this rally.

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