Surge in Open Interest Signals Shift in Market Dynamics for SAIL Amid Price Challenges

Jul 28 2025 03:00 PM IST
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Steel Authority of India Ltd. (SAIL) has seen a notable rise in open interest, reaching 53,229 contracts, alongside a trading volume of 57,713 contracts, indicating increased activity in the derivatives market. Despite this, SAIL's stock has underperformed, experiencing consecutive losses and remaining below several short-term moving averages.
Steel Authority of India Ltd. (SAIL), a prominent player in the ferrous metals industry, has experienced a significant increase in open interest today. The latest open interest stands at 53,229 contracts, marking a rise of 5,809 contracts or 12.25% from the previous open interest of 47,420. This uptick in open interest coincides with a trading volume of 57,713 contracts, indicating heightened activity in the derivatives market.

Despite this surge in open interest, SAIL's stock has underperformed its sector, declining by 3.44% today, compared to a sector decline of 0.87%. The stock has faced consecutive losses over the past two days, with a total drop of 7.47% during this period. The intraday low for SAIL was recorded at Rs 124.13, reflecting a 5% decrease from the previous close.

In terms of moving averages, SAIL's stock is currently above the 100-day and 200-day moving averages but below the 5-day, 20-day, and 50-day averages. The stock's liquidity remains robust, with a delivery volume of 53.22 lakh shares on July 25, which is 38.94% higher than the 5-day average delivery volume. Overall, the notable increase in open interest highlights a shift in market dynamics for SAIL, amidst its recent price challenges.
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