National Aluminium Company Ltd Opens with Weak Start, Significant Gap Down Amid Market Concerns

Feb 01 2026 10:15 AM IST
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National Aluminium Company Ltd (Stock ID: 359296) commenced trading today with a pronounced gap down, opening at a price 8.47% lower than its previous close. This weak start reflects prevailing market concerns within the Non - Ferrous Metals sector, as the stock underperformed both its sector and the broader Sensex index amid notable selling pressure.
National Aluminium Company Ltd Opens with Weak Start, Significant Gap Down Amid Market Concerns

Opening Price Drop and Intraday Movement

The stock opened sharply lower, signalling a continuation of the recent downward momentum. At the opening bell, National Aluminium Company Ltd registered a loss of 8.47%, a significant gap down that set the tone for the trading session. The intraday low further extended to Rs 340.2, marking an 11.57% decline from the previous close. Despite this steep fall, the stock managed to recover somewhat from its intraday low, closing with a day change of -7.63%.

Sector and Market Context

Within the Aluminium & Aluminium Products sector, the stock’s performance was notably weaker, underperforming the sector’s decline of 4.08% by over 3.5 percentage points. The Sensex, in contrast, posted a modest gain of 0.15% on the day, highlighting the stock’s relative weakness. Over the past month, however, National Aluminium Company Ltd has delivered a positive return of 12.20%, outperforming the Sensex’s negative 2.69% return during the same period.

Recent Price Trends and Technical Indicators

National Aluminium Company Ltd has been on a downward trajectory for the last two consecutive trading days, accumulating a total loss of 16.2% in that span. The stock’s moving averages present a mixed picture: it remains above its 20-day, 50-day, 100-day, and 200-day moving averages, indicating longer-term support levels, but trades below its 5-day moving average, reflecting short-term weakness.

Technical analysis reveals a predominantly bullish outlook on weekly and monthly timeframes. The MACD, Bollinger Bands, and Dow Theory indicators all signal bullish momentum on both weekly and monthly charts. The KST indicator is mildly bearish on the monthly scale but bullish weekly. The Relative Strength Index (RSI) does not currently provide a clear signal. The On-Balance Volume (OBV) indicator remains bullish, suggesting that volume trends have not yet confirmed a sustained sell-off.

Volatility and Beta Considerations

National Aluminium Company Ltd is classified as a high beta stock, with an adjusted beta of 1.58 relative to the Sensex. This elevated beta indicates that the stock tends to experience larger price swings compared to the broader market, which is consistent with the sharp gap down and intraday volatility observed today.

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Market Reaction and Trading Dynamics

The significant gap down opening was influenced by overnight developments that heightened market caution towards the stock and its sector. The sharp decline at the open triggered a wave of selling pressure, as reflected in the intraday low of Rs 340.2. This panic selling was somewhat tempered as the session progressed, with the stock recovering from its lowest point to close with a less severe loss. This intraday recovery suggests some buying interest emerged at lower levels, providing partial support against further declines.

Mojo Score and Rating Update

National Aluminium Company Ltd holds a Mojo Score of 80.0, categorised under a Strong Buy grade as of 11 Nov 2025, an upgrade from its previous Buy rating. This rating reflects the company’s solid fundamentals and technical strength despite recent price volatility. The market capitalisation grade stands at 2, indicating a mid-sized company within its sector.

Comparative Performance and Sector Influence

The Aluminium & Aluminium Products sector has experienced a decline of 4.08% today, which, while negative, is less severe than the stock’s own losses. This divergence highlights company-specific factors contributing to the stock’s underperformance. The broader market’s modest positive return further emphasises the stock’s relative weakness on the day.

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Summary of Price Action and Outlook

Today’s trading session for National Aluminium Company Ltd was characterised by a significant gap down opening, reflecting heightened market concerns and sector weakness. The stock’s intraday low of Rs 340.2 represented an 11.57% drop from the previous close, with a closing loss of 7.63%. Despite this, the stock remains above key longer-term moving averages, and technical indicators on weekly and monthly charts continue to signal bullish momentum. The high beta nature of the stock explains the amplified price movements relative to the broader market and sector.

While the immediate price action indicates caution, the partial recovery from intraday lows suggests some resilience among buyers at lower price points. The stock’s recent upgrade to a Strong Buy rating and its solid Mojo Score underscore its fundamental strength amid short-term volatility.

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