Open Interest and Volume Dynamics
On 22 Jan 2026, SAIL recorded an open interest (OI) of 61,792 contracts in its derivatives, marking a robust increase of 8,736 contracts or 16.47% compared to the previous day’s OI of 53,056. This substantial rise in OI, alongside a futures volume of 46,072 contracts, indicates fresh positions being established rather than existing ones being squared off. The combined futures and options value stood at approximately ₹18,503 crores, with futures contributing ₹1,826 crores and options dominating at ₹14,772 crores, underscoring active hedging and speculative interest.
The underlying stock price has also been on an upward trajectory, hitting a new 52-week high of ₹153.9 during intraday trading, a 5.09% gain on the day. This price movement outperformed the ferrous metals sector by 1.89% and the broader Sensex by 2.54%, reflecting strong relative strength. Notably, SAIL has gained for two consecutive sessions, delivering a cumulative return of 4.37% over this period.
Market Positioning and Technical Indicators
SAIL’s trading levels are comfortably above its key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a sustained uptrend. The rising delivery volume of 79.78 lakh shares on 21 Jan, which is 12.13% higher than the 5-day average delivery volume, further confirms increasing investor participation and conviction in the stock’s prospects.
Liquidity remains adequate, with the stock’s traded value supporting sizeable trade sizes up to ₹5.96 crores based on 2% of the 5-day average traded value. This liquidity profile favours institutional and retail investors alike, enabling smoother execution of large orders without significant price impact.
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Interpreting the Open Interest Surge
The 16.47% jump in open interest is a clear indication of increased market interest and fresh capital inflows into SAIL’s derivatives. Such a rise typically suggests that traders are initiating new positions, often reflecting a directional bias. Given the concurrent price appreciation and volume expansion, it is reasonable to infer that the majority of these new positions are bullish bets, anticipating further upside in the stock.
Moreover, the substantial options market value relative to futures points to active hedging strategies and speculative plays using options contracts. This could imply that market participants are positioning for volatility or leveraging asymmetric payoff structures to capitalise on expected price moves.
Mojo Score and Analyst Ratings
MarketsMOJO assigns SAIL a Mojo Score of 65.0, upgrading its Mojo Grade from Sell to Hold as of 23 Dec 2025. This reflects an improvement in the company’s fundamentals and technical outlook, though it remains a cautious stance given the mid-cap’s market cap grade of 2. The stock’s recent outperformance relative to its sector and benchmark indices supports this upgraded rating, signalling a potential shift in market sentiment.
Sector and Market Context
The ferrous metals sector has been under pressure due to global commodity price fluctuations and demand uncertainties. However, SAIL’s recent price resilience and rising open interest suggest it is emerging as a preferred play within the sector. The stock’s ability to outperform the sector by nearly 2% on the day and maintain gains over multiple sessions highlights its relative strength amid sectoral headwinds.
Investors should note that while the open interest surge and price action are encouraging, the stock’s mid-cap status and moderate market cap grade warrant a balanced approach. Monitoring further developments in volume, open interest, and price trends will be crucial to confirm sustained momentum.
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Investor Implications and Outlook
For investors, the surge in open interest combined with strong price performance and rising volumes presents an opportunity to reassess SAIL’s positioning within their portfolios. The stock’s technical strength, supported by its trading above all major moving averages, suggests a positive near-term outlook.
However, given the stock’s Hold rating and mid-cap classification, investors should remain vigilant to broader market and sectoral developments. Volatility in global steel prices, input cost pressures, and policy changes could impact the stock’s trajectory. Active monitoring of derivatives activity, especially open interest trends and volume patterns, will provide valuable insights into evolving market sentiment and potential directional bets.
Conclusion
Steel Authority Of India Ltd. is currently exhibiting signs of renewed investor interest and bullish momentum, as evidenced by a notable rise in open interest and robust price gains. The stock’s improved Mojo Grade and relative outperformance within the ferrous metals sector reinforce its appeal as a mid-cap contender. While the derivatives market activity points to fresh bullish positioning, investors should balance optimism with caution, considering sectoral risks and the stock’s liquidity profile.
Overall, SAIL’s recent market behaviour underscores its potential as a key player in the ferrous metals space, warranting close attention from traders and long-term investors alike.
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