Open Interest and Volume Dynamics
On 25 Feb 2026, SAIL’s open interest (OI) in derivatives rose sharply by 7,626 contracts, a 22.52% increase from the previous day’s 33,862 to 41,488. This notable expansion in OI indicates fresh positions being established rather than existing ones being squared off, reflecting growing conviction among traders. Concurrently, the volume stood at 23,510 contracts, underscoring active participation in the futures and options market.
The combined futures and options value for SAIL reached ₹74,223.98 lakhs, with futures contributing ₹69,866.33 lakhs and options an overwhelming ₹11,792.28 crores. This substantial notional value highlights the stock’s liquidity and attractiveness for derivatives trading, especially within the mid-cap ferrous metals space.
Price Performance and Technical Indicators
SAIL’s underlying price has been on an upward trajectory, hitting a new 52-week high of ₹167.2 on the day of the OI surge. The stock outperformed its sector by 1.47%, with a 3.65% gain on the day, compared to the ferrous metals sector’s 2.44% and the Sensex’s modest 0.64% rise. Over the past two days, SAIL has delivered a cumulative return of 6.01%, signalling sustained buying interest.
Technically, SAIL is trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — reinforcing the bullish momentum. The stock’s rising delivery volume, which surged by 258.97% to 2.11 crore shares on 24 Feb compared to the five-day average, further confirms strong investor participation and confidence in the stock’s near-term prospects.
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Market Positioning and Sentiment
The surge in open interest alongside rising prices and volumes suggests that market participants are positioning for further upside in SAIL. The increase in OI by over 22% is a strong indicator that fresh long positions are being built, reflecting bullish sentiment. This is supported by the stock’s Mojo Score of 65.0 and an upgraded Mojo Grade from Sell to Hold as of 23 Dec 2025, signalling improving fundamentals and technical outlook.
Despite the positive momentum, the stock’s Market Cap Grade remains at 2, categorising it as a mid-cap entity with moderate liquidity and risk profile. Investors should weigh this alongside the sector’s overall performance, where steel, sponge iron, and pig iron stocks have collectively gained 2.46%, indicating a favourable industry backdrop.
Implications for Investors and Traders
The combination of rising open interest, strong volume, and price appreciation in SAIL’s derivatives market points to increased speculative and institutional interest. Traders may interpret this as a signal to consider bullish strategies such as long futures or call options, anticipating further gains. However, the stock’s recent outperformance and elevated valuations warrant cautious monitoring for potential profit booking or volatility spikes.
Liquidity metrics also support active trading, with the stock’s average traded value allowing for sizeable trade sizes up to ₹7.05 crores without significant market impact. This ensures that both retail and institutional investors can participate efficiently in the stock’s upward journey.
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Sectoral Context and Outlook
The ferrous metals sector continues to benefit from robust domestic demand, infrastructure spending, and export opportunities. SAIL, as a leading player, is well positioned to capitalise on these trends. The recent upgrade in its Mojo Grade from Sell to Hold reflects improving operational metrics and market sentiment.
However, investors should remain vigilant about global commodity price fluctuations, input cost pressures, and regulatory developments that could impact margins. The stock’s recent price strength and open interest surge may attract short-term traders, but long-term investors should consider fundamental factors alongside technical signals.
Conclusion
Steel Authority Of India Ltd.’s sharp increase in open interest, coupled with strong volume and price gains, signals a bullish market stance among derivatives traders. The stock’s technical strength, rising investor participation, and sector tailwinds provide a constructive backdrop for further appreciation. Nonetheless, given its mid-cap status and valuation considerations, investors are advised to balance optimism with prudent risk management.
Overall, SAIL’s evolving market positioning and improved Mojo Grade suggest it remains a key stock to watch within the ferrous metals space, offering potential opportunities for both traders and investors seeking exposure to India’s steel sector growth story.
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