National Aluminium Company Ltd Gains 5.37%: 6 Key Factors Driving the Week’s Momentum

5 January: New 52-Week High Signals Strong Momentum

National Aluminium Company Ltd began the week on a positive note, hitting a new 52-week high of Rs.334.95 on 5 January 2026. The stock closed at Rs.330.95, up 0.21% on the day, while the Sensex declined 0.18%. This milestone reflected sustained momentum from the previous months, with the stock trading comfortably above all key moving averages. The company’s fundamentals, including a debt-free balance sheet and strong profitability metrics, underpinned investor confidence. Institutional holdings stood at 31.66%, increasing modestly, signalling steady support from large investors.

6 January: Record Volume and Open Interest Fuel Rally to Intraday Highs

On 6 January, NACL surged sharply, reaching an intraday high of Rs.350.4, a 5.88% increase from the previous close. The stock closed at Rs.346.70, up 4.76%, outperforming the Aluminium sector gain of 4.15% and the Sensex’s 0.19% decline. Exceptional trading volume of 1.42 crore shares and a sharp 29.6% rise in derivatives open interest to 39,627 contracts highlighted strong accumulation and bullish positioning by traders. The futures and options notional values exceeded ₹1.5 trillion, underscoring elevated market participation. Despite a 13.26% drop in delivery volumes, the overall liquidity and technical strength remained robust, supporting the stock’s breakout above key resistance levels.

7 January: New 52-Week High Amidst Sustained Volume Surge

Continuing its upward trajectory, National Aluminium hit a new 52-week high of Rs.356.35 on 7 January, closing at Rs.352.50, up 1.67%. The stock outperformed the Sensex, which rose marginally by 0.03%. Trading volume remained elevated at 1.10 crore shares, with delivery volumes surging 75.58% over the five-day average, indicating strong investor conviction. The stock’s technical indicators remained bullish, trading above all major moving averages. Institutional confidence was reflected in the steady increase in shareholding and the company’s upgraded Mojo Grade of Strong Buy with a score of 85.0. Market capitalisation reached approximately Rs.63,676 crore, consolidating its position as the second-largest player in the non-ferrous metals sector.

8 January: Price Correction Amid Sectoral Weakness and High Volume

After five consecutive days of gains, the stock faced a sharp intraday correction on 8 January, falling 5.38% to close at Rs.333.55. The intraday low touched Rs.335.35, reflecting selling pressure amid a 2.77% decline in the Aluminium & Aluminium Products sector and a 1.41% drop in the Sensex. Despite the price dip, trading volume remained high at 1.11 crore shares, with delivery volumes increasing by 65.01%, suggesting a mix of profit-taking and fresh accumulation. The stock’s position above key moving averages indicated that the medium- to long-term uptrend remained intact. The correction was viewed as a healthy pause following a strong rally, with fundamentals and analyst ratings remaining positive.

9 January: Recovery and Weekly Close Above Rs.348

National Aluminium rebounded strongly on 9 January, gaining 4.33% to close at Rs.348.00. This recovery followed the previous day’s correction and was achieved despite the Sensex declining 0.89%. The stock’s volume surged to 2.78 million shares, reflecting renewed buying interest. The strong finish capped a week of notable volatility but overall positive momentum, with the stock outperforming the Sensex by nearly 8% over the week. The company’s fundamentals, including a debt-free balance sheet, robust operating profit growth of 139.15% annualised, and a healthy dividend yield of approximately 3.1%, continue to support investor confidence.

Key Takeaways

Positive Signals: National Aluminium demonstrated strong relative strength, outperforming the Sensex by nearly 8% during a week of broad market weakness. Multiple new 52-week highs and all-time highs were recorded, supported by robust volume and derivatives open interest surges. The company’s fundamentals remain solid, with impressive operating profit growth, a debt-free balance sheet, and a healthy dividend yield around 3.1%. Institutional ownership increased slightly, reflecting sustained confidence.

Cautionary Notes: The sharp intraday correction on 8 January amid sectoral weakness and high volume suggests profit-taking and short-term volatility risk. Delivery volumes declined on some days, indicating that speculative trading may be influencing price action. The stock’s premium valuation metrics, including a price-to-book ratio above 3 and a low PEG ratio of 0.1, imply that earnings growth expectations are already priced in, warranting close monitoring of earnings delivery and sector dynamics.

Conclusion

National Aluminium Company Ltd’s performance during the week of 5 to 9 January 2026 was marked by strong gains, multiple new highs, and robust trading activity, reflecting a combination of solid fundamentals and positive market sentiment. Despite a midweek correction triggered by sectoral pressures, the stock closed the week well above its opening price, significantly outperforming the broader market. The company’s upgraded Mojo Grade of Strong Buy and high Mojo Score of 85.0 reinforce its quality credentials. Investors should watch for continued volume trends, derivatives activity, and sector developments to assess the sustainability of the current momentum in this mid-cap non-ferrous metals leader.

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