Steel Authority Of India Ltd. Edges Lower 0.27% Despite New 52-Week Highs and Strong Volume

Monday, 19 January 2026: Modest Gain Amid Market Weakness

SAIL opened the week at Rs.149.45, registering a small gain of 0.13% despite the Sensex falling 0.49% to 36,650.97. The stock’s volume was moderate at 400,561 shares, indicating steady investor interest. This relative strength against a declining benchmark suggested early resilience in the stock amid a cautious market environment.

Tuesday, 20 January 2026: Sharp Correction on Broad Market Sell-Off

On 20 January, SAIL’s price dropped sharply by 2.71% to Rs.145.40, mirroring a significant Sensex decline of 1.82%. The stock’s volume surged to 670,773 shares, reflecting increased selling pressure amid broader market weakness. This day’s decline marked the week’s low point for the stock, aligning with a widespread risk-off sentiment impacting mid-cap and metal stocks.

Wednesday, 21 January 2026: Recovery Begins with Increased Volume

SAIL rebounded modestly on 21 January, gaining 0.62% to close at Rs.146.30. The volume jumped to over 1.07 million shares, signalling renewed buying interest. Despite the Sensex falling another 0.47%, the stock’s recovery hinted at underlying strength. Delivery volumes rose by 12.13% compared to the five-day average, indicating genuine accumulation rather than speculative trading.

Thursday, 22 January 2026: New 52-Week High and Exceptional Volume Surge

On 22 January, SAIL surged 3.59% to Rs.151.55, hitting a new 52-week high of Rs.153.9 intraday. This marked a significant milestone, reflecting strong bullish momentum. The stock outperformed the Sensex, which gained 0.76%, and the ferrous metals sector by 2.37%. Volume soared to 1.10 million shares, with traded value approximating ₹161.93 crores, making SAIL one of the most actively traded stocks of the day.

Open interest in derivatives jumped 39.29% to 73,902 contracts, accompanied by a futures segment value of ₹3,93,658.37 lakhs and options notional value of ₹21,717,431.658 lakhs. This surge in open interest alongside rising prices indicated fresh long positions and strong market conviction. The stock traded above all key moving averages, confirming a sustained uptrend.

Friday, 23 January 2026: New 52-Week Highs Amid Strong Momentum, Week Closes Slightly Lower

SAIL continued its upward trajectory on 23 January, reaching a new 52-week high of Rs.156.5 intraday and closing at Rs.148.85, down 1.78% on the day. Despite the dip, the stock outperformed the Sensex, which fell 1.33%. The three-day consecutive gain period culminated in a cumulative return of 6.95%, underscoring robust buying interest.

Volume surged to 1.59 crore shares with a traded value of ₹246.88 crore, reflecting exceptional liquidity and investor participation. Delivery volumes on 22 January had risen by 175.69% compared to the five-day average, signalling strong accumulation. The stock maintained its position above all major moving averages, reinforcing the bullish technical setup.

SAIL’s Mojo Score remains at 65.0 with a Hold rating, upgraded from Sell on 23 December 2025, reflecting improved fundamentals and market perception. The market capitalisation stood at ₹63,507 crore, classifying it as a mid-cap stock with moderate risk relative to larger peers.

Key Takeaways

Positive Signals: SAIL demonstrated resilience by outperforming the Sensex throughout the week despite overall market weakness. The stock hit new 52-week highs twice, reaching Rs.153.9 on 22 January and Rs.156.5 on 23 January, supported by strong volume surges exceeding 1 crore shares daily. The sharp rise in open interest and delivery volumes indicates genuine accumulation and growing investor conviction. Technical indicators remain bullish with the stock trading above all major moving averages. The Mojo Score upgrade to Hold from Sell reflects improving fundamentals and market sentiment.

Cautionary Notes: Despite the strong momentum midweek, the stock closed the week slightly lower at Rs.148.85, down 0.27% from the previous Friday’s close. The ferrous metals sector remains cyclical and sensitive to macroeconomic factors such as raw material costs and global demand fluctuations, which could introduce volatility. The mid-cap classification and moderate market cap grade suggest a need for prudent risk management amid potential sector headwinds.

Conclusion

Steel Authority Of India Ltd. exhibited a mixed but overall resilient performance during the week ending 23 January 2026. While the stock closed marginally lower, it significantly outperformed the broader Sensex, which declined over 3%. The attainment of new 52-week highs, coupled with exceptional volume and open interest surges, underscores strong investor interest and technical strength. The upgrade in Mojo Score to Hold further supports a stabilising outlook. Investors should monitor volume trends and sector developments closely, balancing the positive momentum against inherent cyclical risks in the ferrous metals industry.

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