National Aluminium Company Ltd Sees Heavy Value Trading Amid Price Pressure

Trading Activity and Price Movement

On 1 February 2026, NATIONALUM recorded a total traded volume of 2.13 crore shares, translating into a substantial traded value of ₹7,507.24 crores. This level of liquidity is notable for a mid-cap stock with a market capitalisation of ₹64,659 crores, reflecting robust investor interest. The stock opened sharply lower at ₹353.00, down 8.42% from the previous close of ₹385.45, and touched an intraday low of ₹329.40, marking a 14.54% decline from the prior day’s close. The day’s high was ₹364.45, resulting in a wide trading range of ₹35.05, indicative of significant price volatility.

Despite the heavy volume, the weighted average price skewed closer to the day’s low, suggesting that sellers dominated the session. NATIONALUM’s last traded price (LTP) stood at ₹354.10 as of 10:40 AM IST, reflecting a day’s loss of 7.97%. This underperformance was more pronounced than the Aluminium & Aluminium Products sector, which declined by 5.13%, and contrasted with the broader Sensex, which marginally gained 0.19% on the day.

Institutional Interest and Delivery Volumes

Investor participation has been on the rise, with delivery volumes reaching 1.45 crore shares on 30 January 2026, a 93% increase compared to the five-day average delivery volume. This surge in delivery volume signals strong institutional interest and confidence in the stock’s medium-term prospects, despite the recent price weakness. The stock’s liquidity profile supports sizeable trade sizes, with a 2% threshold of the five-day average traded value allowing for transactions up to ₹24.2 crores without significant market impact.

Technical and Fundamental Assessment

From a technical standpoint, NATIONALUM’s price currently trades above its 50-day, 100-day, and 200-day moving averages, which typically indicates a positive long-term trend. However, the stock is below its 5-day and 20-day moving averages, reflecting short-term selling pressure and a potential consolidation phase. The recent two-day consecutive decline has resulted in a cumulative return drop of 16.94%, highlighting near-term volatility.

Fundamentally, MarketsMOJO has upgraded NATIONALUM’s Mojo Grade from Buy to Strong Buy as of 11 November 2025, assigning a robust Mojo Score of 80.0. This upgrade reflects improved financial metrics, operational efficiencies, and favourable sectoral tailwinds. The company’s market cap grade remains at 2, categorising it firmly within the mid-cap segment, which often offers a blend of growth potential and manageable risk.

Sectoral Context and Comparative Performance

The non-ferrous metals sector, particularly aluminium and aluminium products, has experienced a downturn with a sectoral decline of 5.13% on the day. NATIONALUM’s sharper fall of 7.97% indicates a more pronounced reaction, possibly due to profit booking or short-term concerns over commodity price fluctuations and global demand uncertainties. However, the stock’s strong Mojo Grade and recent upgrade suggest that underlying fundamentals remain intact, positioning it favourably relative to peers.

Investors should note that the stock’s price action is occurring against a backdrop of rising delivery volumes and institutional accumulation, which often precedes a recovery phase. The wide intraday range and gap-down opening may represent a temporary correction within a longer-term uptrend supported by solid financial health and operational performance.

Valuation and Market Sentiment

Despite the recent price weakness, NATIONALUM’s valuation metrics remain attractive for mid-cap investors seeking exposure to the non-ferrous metals industry. The company’s market capitalisation of ₹64,659 crores places it in a segment that balances growth potential with relative stability compared to smaller caps. The stock’s liquidity profile further enhances its appeal for institutional investors and large traders, enabling significant order flow without excessive price impact.

Market sentiment appears mixed, with short-term technical indicators signalling caution, while fundamental upgrades and rising delivery volumes point to underlying strength. This dichotomy suggests that investors should monitor price action closely for signs of consolidation or reversal, particularly as the stock trades near key moving averages.

Outlook and Investor Considerations

Looking ahead, National Aluminium Company Ltd’s stock performance will likely hinge on broader commodity price trends, global demand for aluminium products, and domestic industrial activity. The company’s strong fundamentals, as reflected in its upgraded Mojo Grade and high Mojo Score, provide a solid foundation for medium to long-term investors.

However, the recent price volatility and underperformance relative to the sector caution investors to remain vigilant. Short-term traders may find opportunities in the wide intraday price swings, while long-term investors should focus on the improving financial metrics and institutional buying patterns.

Given the stock’s liquidity and sizeable order flow, it remains a preferred choice for large investors seeking exposure to the non-ferrous metals space. The combination of strong delivery volumes and a robust upgrade in rating suggests that the current price weakness could represent a buying opportunity for those with a medium-term horizon.

Summary

National Aluminium Company Ltd has demonstrated significant trading activity with a total traded value exceeding ₹7,500 crores on 1 February 2026, despite a sharp price correction of nearly 8%. Institutional interest is rising, as evidenced by a near doubling of delivery volumes, while the stock maintains a strong fundamental outlook with a recent upgrade to Strong Buy by MarketsMOJO. Investors should weigh the short-term volatility against the company’s solid financial health and sectoral positioning when considering exposure to this mid-cap non-ferrous metals stock.

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