Open Interest and Volume Dynamics
On 25 Feb 2026, NATIONALUM's open interest in futures and options contracts rose sharply by 2,566 contracts, an 11.61% increase from the previous day’s 22,093 to 24,659. This notable rise in OI was accompanied by a volume of 23,778 contracts, reflecting strong trading activity and fresh positions being established by market participants. The futures value stood at ₹60,472.65 lakhs, while the options segment contributed a substantial ₹26,893.08 crores, culminating in a total derivatives value of approximately ₹68,365.12 lakhs.
The underlying stock price closed at ₹360, marking a 4.91% gain for the day, comfortably outperforming the Aluminium & Aluminium Products sector’s 2.14% rise and the broader Sensex’s modest 0.38% advance. NATIONALUM’s outperformance by 2.74% relative to its sector highlights strong investor conviction and positive sentiment.
Technical and Market Positioning Insights
Technically, NATIONALUM’s price remains above its 5-day, 50-day, 100-day, and 200-day moving averages, signalling sustained medium to long-term strength. However, it trades slightly below the 20-day moving average, suggesting some short-term consolidation or profit booking. The stock has recorded consecutive gains over the past two sessions, delivering a cumulative return of 6.3%, which aligns with the rising open interest and volume trends.
Investor participation has also intensified, with delivery volumes reaching 29.7 lakh shares on 24 Feb 2026, a 20.51% increase over the five-day average. This rise in delivery volume indicates genuine accumulation rather than speculative trading, reinforcing the bullish narrative.
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Implications of Rising Open Interest
The surge in open interest alongside rising prices typically suggests fresh long positions being taken, reflecting bullish market sentiment. In NATIONALUM’s case, the 11.61% increase in OI coupled with a 4.91% price gain points to strong directional bets favouring an upward trajectory. This is further supported by the stock’s mojo score of 72.0 and a current mojo grade of Buy, albeit downgraded from Strong Buy on 23 Feb 2026, indicating a slight moderation in enthusiasm but still a positive outlook.
Market participants appear to be positioning for continued strength in the non-ferrous metals sector, buoyed by improving demand fundamentals and stable aluminium prices. The stock’s high dividend yield of 3.2% at current levels adds to its attractiveness, providing income alongside capital appreciation potential.
Sector and Market Context
The Aluminium & Aluminium Products sector has gained 2.14% on the day, reflecting broad-based recovery and investor interest in metals amid global supply constraints and rising industrial demand. NATIONALUM’s mid-cap market capitalisation of ₹65,090 crore places it as a significant player within the non-ferrous metals space, with liquidity sufficient to support sizeable trades up to ₹4.13 crore based on 2% of the five-day average traded value.
Comparatively, NATIONALUM’s 4.08% day change and 4.91% one-day return outpace the sector and benchmark indices, underscoring its leadership in the current rally. The stock’s ability to sustain above key moving averages and rising delivery volumes suggests robust investor confidence and potential for further upside.
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Investor Positioning and Potential Risks
While the open interest surge and price appreciation signal bullish positioning, investors should remain cautious of short-term volatility. The stock’s price currently trades just below the 20-day moving average, which may act as a resistance level in the near term. Profit booking or sector rotation could temper gains temporarily.
Moreover, the downgrade from Strong Buy to Buy on 23 Feb 2026 by MarketsMOJO reflects a tempered outlook, possibly due to valuation concerns or near-term headwinds. The market cap grade of 2 indicates moderate size and liquidity, which while adequate, may limit institutional manoeuvrability during volatile phases.
Nonetheless, the combination of rising delivery volumes, strong derivatives activity, and sector tailwinds supports a constructive medium-term outlook for NATIONALUM. Investors with a focus on non-ferrous metals and dividend yield may find this stock appealing for portfolio inclusion.
Conclusion
National Aluminium Company Ltd’s recent spike in open interest and volume in the derivatives market, coupled with strong price performance and rising investor participation, underscores a bullish market stance. The stock’s technical positioning above key moving averages and attractive dividend yield further enhance its investment appeal. While some caution is warranted due to short-term resistance and a recent rating downgrade, the overall outlook remains positive within the context of sector strength and improving fundamentals.
Market participants should monitor open interest trends and price action closely to gauge the sustainability of this momentum and adjust positions accordingly.
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