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

Open Interest and Volume Dynamics

On 22 Jan 2026, SAIL’s open interest (OI) in futures and options contracts surged to 67,353 contracts, marking a substantial increase of 14,297 contracts or 26.95% compared to the previous day’s OI of 53,056. This sharp rise in OI indicates fresh positions being built by market participants, reflecting heightened interest and conviction in the stock’s near-term prospects.

Simultaneously, the trading volume stood at 65,242 contracts, closely tracking the open interest, which suggests that the increase in OI is supported by active trading rather than merely rollovers or squaring off of positions. The futures value traded was ₹2,82,955.13 lakhs, while the options segment recorded an impressive ₹18,408.13 crores in value, underscoring the robust liquidity and investor engagement in SAIL derivatives.

Price Performance and Technical Indicators

SAIL’s underlying stock price has been on an upward trajectory, hitting a new 52-week high of ₹153.90 on the day of the OI surge. The stock outperformed its ferrous metals sector peers by 1.44%, delivering a 3.07% gain compared to the sector’s 1.69% and the Sensex’s modest 0.22% rise. This marks the second consecutive day of gains, with a cumulative return of 3.82% over this period.

Technically, SAIL is trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a strong bullish trend. The rising delivery volume of 79.78 lakh shares on 21 Jan, up 12.13% against the five-day average, further confirms increasing investor participation and confidence in the stock’s fundamentals and outlook.

Market Positioning and Directional Bets

The surge in open interest alongside rising prices and volumes typically points to fresh long positions being established by traders and institutional investors. This suggests a directional bet favouring further upside in SAIL’s stock price. The substantial increase in futures and options value traded indicates that participants are actively hedging or speculating on the stock’s near-term movement, possibly anticipating positive catalysts such as improved steel demand, favourable government policies, or better-than-expected quarterly results.

Given the stock’s market cap of ₹62,346.15 crores, categorised as a mid-cap, the liquidity metrics are encouraging. The stock’s traded value supports sizeable trade sizes up to ₹5.96 crores based on 2% of the five-day average traded value, making it accessible for both retail and institutional investors.

Mojo Score Upgrade and Analyst Sentiment

Reflecting the positive momentum, Steel Authority Of India Ltd.’s Mojo Score has improved to 65.0, earning a ‘Hold’ grade as of 23 Dec 2025, upgraded from a previous ‘Sell’ rating. This upgrade signals a shift in analyst sentiment, recognising the stock’s strengthening fundamentals and technical outlook. However, the market cap grade remains modest at 2, indicating that while the stock is gaining favour, it still carries mid-cap level risks and volatility.

Investors should note that despite the upgrade, the ‘Hold’ rating suggests cautious optimism, recommending monitoring the stock’s performance and broader sector trends before committing to larger positions.

Sector Context and Comparative Performance

The ferrous metals sector has been experiencing mixed trends amid fluctuating global steel prices and domestic demand patterns. SAIL’s outperformance relative to its sector peers by 1.44% on the day of the OI surge highlights its relative strength and potential to capitalise on sectoral tailwinds. The stock’s ability to sustain above key moving averages and maintain rising volumes positions it favourably against competitors.

However, investors should remain vigilant of external factors such as raw material cost inflation, regulatory changes, and global trade dynamics that could impact steel producers’ profitability and stock valuations.

Implications for Investors and Traders

The sharp increase in open interest combined with rising prices and volumes suggests that market participants are positioning for a bullish phase in SAIL. Traders may consider this as a signal to explore long futures or call option strategies, while investors might view the stock as a potential addition to portfolios seeking exposure to the ferrous metals sector’s recovery.

Nonetheless, given the stock’s mid-cap status and the inherent cyclicality of the steel industry, prudent risk management and close monitoring of price action and volume trends remain essential. The recent upgrade to a ‘Hold’ rating by MarketsMOJO further supports a balanced approach, favouring participation with caution.

Conclusion

Steel Authority Of India Ltd.’s recent surge in open interest and volume, coupled with its price breakout to a 52-week high, underscores a growing bullish sentiment among market participants. The upgrade in Mojo Score to ‘Hold’ reflects improved fundamentals and technical strength, although investors should remain mindful of sectoral risks and market volatility.

With robust liquidity and active derivatives participation, SAIL presents an intriguing opportunity for traders and investors looking to capitalise on the ferrous metals sector’s recovery. However, a measured approach with ongoing analysis of market positioning and price trends is advisable to navigate the stock’s mid-cap dynamics effectively.

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