Steel Authority Of India Ltd Sees Sharp Open Interest Surge Amid Bullish Momentum

Open Interest and Volume Dynamics

On 22 January 2026, SAIL’s open interest (OI) in derivatives jumped to 64,872 contracts from the previous 53,056, marking a robust increase of 22.27%. This substantial rise in OI was accompanied by a volume of 56,175 contracts, indicating heightened trading activity and fresh positions being established by market participants. The futures value stood at ₹2,31,857.34 lakhs, while the options segment contributed a massive ₹17,074.71 crores, culminating in a total derivatives value of approximately ₹2,34,702.65 lakhs.

The underlying stock price also reflected this positive momentum, closing at ₹150 with an intraday high of ₹153.9, a new 52-week peak. The stock outperformed its sector by 1.22% and the broader Sensex by 2.45%, registering a day gain of 2.86% compared to the sector’s 1.65% and Sensex’s 0.18%. This outperformance, coupled with rising OI, suggests that traders are positioning for further upside in SAIL.

Technical and Trend Indicators

SAIL’s price is currently trading above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a strong uptrend across multiple timeframes. The stock has recorded consecutive gains over the past two sessions, delivering a cumulative return of 3.61%. Additionally, delivery volumes have surged to 79.78 lakh shares on 21 January, a 12.13% increase over the five-day average, indicating rising investor participation and conviction in the stock’s rally.

Liquidity remains adequate, with the stock’s traded value supporting a trade size of nearly ₹5.96 crores based on 2% of the five-day average traded value. This ensures that institutional and retail investors can transact sizeable volumes without significant price impact.

Market Positioning and Investor Sentiment

The sharp increase in open interest alongside rising volumes typically indicates that new money is flowing into the stock, with traders establishing fresh long positions rather than merely rolling over existing ones. This is further supported by the stock’s upgrade in MarketsMOJO’s mojo grade from Sell to Hold on 23 December 2025, reflecting an improvement in fundamental and technical outlook. The current mojo score stands at 65.0, signalling moderate confidence among analysts and investors.

SAIL’s market capitalisation is approximately ₹63,032 crores, categorising it as a mid-cap stock within the ferrous metals industry. Despite the mid-cap status, the stock’s recent price action and derivatives activity suggest it is attracting significant attention from both institutional and retail investors.

Sectoral and Broader Market Context

The ferrous metals sector has been underpinned by improving demand fundamentals, driven by infrastructure spending and industrial activity. SAIL’s outperformance relative to its sector peers indicates a potential leadership role in the ongoing rally. The stock’s ability to sustain above key moving averages and hit new 52-week highs reinforces the bullish narrative.

However, investors should remain cautious of volatility inherent in commodity-linked stocks, which can be influenced by global steel prices, raw material costs, and regulatory developments. The recent surge in derivatives activity may also reflect speculative positioning, which could lead to sharp price swings in the short term.

Implications for Investors and Traders

The current surge in open interest and volume in SAIL’s derivatives market suggests that traders are positioning for a continuation of the recent uptrend. The stock’s technical strength, combined with improving delivery volumes and a positive mojo grade upgrade, supports a cautiously optimistic outlook.

Investors looking to capitalise on this momentum should monitor key support levels around the 5-day and 20-day moving averages, which currently act as technical cushions. A sustained break above the recent high of ₹153.9 could open the path for further gains, while any sharp reversal in open interest or volume patterns may signal profit-taking or a shift in market sentiment.

Given the stock’s mid-cap status and sector dynamics, it remains essential to balance exposure with risk management strategies, especially in a volatile commodity environment.

Summary of Key Metrics

• Open Interest: 64,872 contracts (up 22.27%)

• Volume: 56,175 contracts

• Futures Value: ₹2,31,857.34 lakhs

• Options Value: ₹17,074.71 crores

• Total Derivatives Value: ₹2,34,702.65 lakhs

• Stock Price: ₹150 (intraday high ₹153.9)

• Market Cap: ₹63,032 crores

• Mojo Score: 65.0 (Hold, upgraded from Sell on 23 Dec 2025)

• Delivery Volume: 79.78 lakh shares (up 12.13%)

• Sector Outperformance: +1.22% vs sector

• Sensex Outperformance: +2.68% vs Sensex

Conclusion

Steel Authority Of India Ltd. is currently exhibiting strong signs of bullish momentum, as evidenced by a sharp rise in derivatives open interest, robust volume patterns, and positive price action. The upgrade in mojo grade and sustained investor participation further bolster the case for a potential continuation of the rally. However, investors should remain vigilant to sectoral risks and market volatility, employing prudent risk management while considering exposure to this mid-cap ferrous metals stock.

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