Open Interest and Volume Dynamics
On 25 Feb 2026, SAIL’s open interest in futures and options contracts surged to 42,025 from the previous 33,862, marking a substantial 24.11% increase. This sharp rise in OI, accompanied by a futures volume of 25,386 contracts, indicates fresh capital inflows and increased participation from traders and institutional investors alike. The futures value stood at approximately ₹7,602.9 crores, while the options segment contributed a staggering ₹12,680.5 crores, culminating in a total derivatives value of ₹8,070.9 crores.
Such a pronounced increase in open interest often reflects new directional bets being placed, with market participants positioning themselves for anticipated price movements. The volume spike, combined with rising OI, typically signals conviction rather than mere short-term speculation.
Price Performance and Technical Indicators
SAIL’s underlying stock price has mirrored this optimism, hitting a new 52-week high of ₹167.2 during intraday trading, representing a 4.38% gain on the day. The stock has outperformed its ferrous metals sector peers by 1.07% and the broader Sensex by 2.95% over the last trading session. Notably, SAIL has recorded consecutive gains over the past two days, delivering a 6% return in this period.
Technically, the stock is trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — underscoring a strong uptrend. This alignment of moving averages often attracts momentum traders and reinforces bullish sentiment among market participants.
Sectoral Context and Investor Participation
The ferrous metals sector, encompassing steel, sponge iron, and pig iron, has gained 2.56% recently, reflecting broader demand optimism and improving fundamentals. SAIL’s delivery volume on 24 Feb surged to 2.11 crore shares, a remarkable 258.97% increase compared to its 5-day average delivery volume. This spike in delivery volume indicates genuine investor interest and accumulation rather than short-term trading.
Liquidity remains robust, with the stock’s traded value supporting sizeable trade sizes up to ₹7.05 crores based on 2% of the 5-day average traded value. This liquidity profile ensures that institutional investors can enter or exit positions without significant price impact.
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Market Positioning and Directional Bets
The surge in open interest alongside rising prices and volumes suggests that market participants are increasingly bullish on SAIL’s near-term prospects. The 24.11% increase in OI is indicative of fresh long positions being established rather than short covering, given the concurrent price appreciation and volume expansion.
Options market data further supports this view, with the options value exceeding ₹12,680 crores, signalling active hedging and speculative activity. Traders appear to be positioning for continued upside, possibly anticipating favourable developments in steel demand, government infrastructure spending, or improved global commodity prices.
SAIL’s Mojo Score currently stands at 65.0, reflecting a Hold rating, upgraded from Sell on 23 Dec 2025. This upgrade was driven by improved fundamentals and technical momentum, although the stock’s Market Cap Grade remains modest at 2, categorising it as a mid-cap with room for growth but also some volatility risk.
Comparative Sector Performance and Outlook
Within the ferrous metals sector, SAIL’s outperformance relative to peers and the broader market is noteworthy. The sector’s 2.56% gain contrasts with the Sensex’s more modest 0.38% rise on the same day, highlighting sector-specific tailwinds. These include rising steel prices, easing raw material costs, and government initiatives to boost infrastructure and manufacturing.
However, investors should remain cautious of potential headwinds such as global economic uncertainties, commodity price volatility, and regulatory changes impacting the steel industry. The Hold rating suggests a balanced view, recognising both the upside potential and inherent risks.
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Investor Takeaways and Strategic Considerations
For investors and traders, the recent surge in open interest and volume in SAIL’s derivatives signals an opportune moment to reassess portfolio exposure. The stock’s technical strength and sector tailwinds support a cautiously optimistic outlook. However, the Hold Mojo Grade advises measured participation, balancing potential gains with risk management.
Market participants should monitor upcoming quarterly results, government policy announcements, and global steel demand indicators to gauge sustainability of the current momentum. Additionally, tracking changes in open interest and volume patterns will provide ongoing insight into market sentiment and positioning.
Given the stock’s mid-cap status and liquidity profile, institutional investors can execute sizeable trades without undue price disruption, while retail investors may benefit from the clear technical signals and rising delivery volumes.
Conclusion
Steel Authority Of India Ltd. is currently experiencing a notable phase of increased market activity, as evidenced by the 24.11% jump in open interest and strong price performance. This reflects growing confidence among investors and traders in the company’s prospects amid a favourable sectoral backdrop. While the Hold rating suggests prudence, the technical and volume indicators point to a constructive near-term outlook. Investors should remain vigilant to market developments and consider SAIL’s derivatives activity as a key barometer of evolving market sentiment.
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