Open Interest and Volume Dynamics
On 25 Feb 2026, SAIL’s open interest (OI) in derivatives jumped by 7,050 contracts, a 20.82% increase from the previous day’s 33,862 to 40,912. This notable rise in OI was accompanied by a robust volume of 21,118 contracts, indicating fresh positions being established rather than mere unwinding of existing ones. The futures value stood at ₹63,270.39 lakhs, while the options segment exhibited an even larger notional value of approximately ₹10,533.67 crores, underscoring the stock’s active derivatives market.
The underlying stock price also reinforced this bullish sentiment, hitting a new 52-week high of ₹167.2 during intraday trading, marking a 4.38% gain on the day. This outperformance was notable against the ferrous metals sector’s 2.27% rise and the Sensex’s modest 0.82% advance. SAIL’s market cap currently stands at ₹67,968 crores, categorising it as a mid-cap stock with improving investor interest.
Technical and Trend Analysis
SAIL’s price is trading comfortably 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 last two sessions, delivering a cumulative return of 5.83%. Such momentum is often supported by rising open interest, which in this case, suggests that market participants are increasingly confident in the stock’s upward trajectory.
Additionally, delivery volumes surged to 2.11 crore shares on 24 Feb, a staggering 258.97% increase over the five-day average delivery volume. This spike in delivery volume indicates genuine buying interest rather than speculative trading, reinforcing the conviction behind the price rally.
Turnaround taking shape! This Small Cap from NBFC sector just hit profitability with strong business fundamentals showing up. Catch it before the major breakout happens!
- - Recently turned profitable
- - Strong business fundamentals
- - Pre-breakout opportunity
Market Positioning and Sentiment
The sharp increase in open interest alongside rising prices and volumes suggests that traders are taking fresh long positions, anticipating further upside. This is a classic sign of bullish market positioning, where participants expect the stock to continue its upward momentum. The 20.82% jump in OI is significant in the context of the stock’s recent performance and sectoral trends.
Moreover, SAIL’s Mojo Score has improved to 65.0, upgrading its Mojo Grade from Sell to Hold as of 23 Dec 2025. This upgrade reflects better fundamentals and technical parameters, although the stock still carries a moderate risk profile with a Market Cap Grade of 2. The improved rating aligns with the observed market behaviour, indicating a cautious but optimistic outlook among investors.
Sectoral and Broader Market Context
The ferrous metals sector has been gaining traction, with Steel, Sponge Iron, and Pig Iron stocks collectively rising by 2.27% on the day. SAIL’s outperformance relative to the sector by 1.33% highlights its leadership within the space. The broader market, represented by the Sensex, showed a more subdued gain of 0.82%, underscoring the sector-specific strength driving SAIL’s rally.
Liquidity remains adequate for sizeable trades, with the stock’s traded value supporting a trade size of approximately ₹7.05 crores based on 2% of the five-day average traded value. This ensures that institutional investors can participate without significant market impact, further supporting the sustainability of the current momentum.
Is Steel Authority Of India Ltd. your best bet? SwitchER suggests better alternatives across peers, market caps, and sectors. Discover stocks that could deliver more for your portfolio!
- - Better alternatives suggested
- - Cross-sector comparison
- - Portfolio optimization tool
Implications for Investors
The confluence of rising open interest, strong volume, and price appreciation in SAIL’s derivatives and cash segments suggests that investors are positioning for a sustained rally. The stock’s technical strength, combined with improving fundamentals as reflected in the Mojo Grade upgrade, provides a compelling case for cautious accumulation.
However, investors should remain mindful of the inherent volatility in the ferrous metals sector, which is sensitive to global commodity prices, government policies, and demand-supply dynamics. While the current momentum is encouraging, prudent risk management and monitoring of sectoral developments remain essential.
Conclusion
Steel Authority Of India Ltd. is currently exhibiting robust market activity, with a pronounced surge in open interest signalling fresh bullish bets. The stock’s outperformance relative to its sector and the broader market, coupled with improved technical and fundamental indicators, suggests a positive near-term outlook. Market participants should watch for sustained volume and OI trends to confirm the durability of this rally, while also considering alternative investment opportunities within the sector and beyond.
Only Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Start Today
