National Aluminium Company Ltd Sees Sharp Open Interest Surge Amid Strong Market Momentum

Open Interest and Volume Dynamics

On 6 January 2026, NATIONALUM’s open interest (OI) in futures and options contracts rose sharply by 8,711 contracts, a 28.49% increase from the previous day’s 30,577 contracts to 39,288. This substantial rise in OI is accompanied by a robust trading volume of 86,667 contracts, indicating active participation from market participants. The futures value stood at approximately ₹92,716 lakhs, while the options segment contributed an enormous ₹10,69,84,76,225 in value, culminating in a total derivatives market value of ₹1,17,821 lakhs for the stock.

This spike in open interest alongside elevated volumes typically signals fresh capital inflows and new directional bets rather than mere position squaring. The underlying stock price has also been on an upward trajectory, hitting a new 52-week high of ₹351.35 intraday, marking a 6.21% gain on the day and outperforming its sector by 2.76%. Over the past four consecutive sessions, NATIONALUM has delivered an impressive 11.57% return, underscoring sustained buying interest.

Price and Moving Average Trends

Technically, NATIONALUM is trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — which is a strong bullish indicator. This alignment of moving averages suggests a well-established uptrend and positive momentum. The stock’s outperformance relative to the Aluminium & Aluminium Products sector, which itself gained 3.38% on the day, highlights its leadership within the industry.

Despite the rally, delivery volumes have seen a decline, with 57.39 lakh shares delivered on 5 January, down 13.26% against the five-day average. This divergence between rising price and falling delivery volume could imply that short-term traders and derivatives players are driving the move rather than long-term investors. However, the stock’s high dividend yield of 3.17% at current prices continues to attract yield-focused investors.

Market Positioning and Directional Bets

The sharp increase in open interest combined with rising prices and volumes suggests that market participants are positioning for further upside in NATIONALUM. The derivatives data points to fresh long positions being established, reflecting bullish sentiment. Given the stock’s mid-cap status with a market capitalisation of ₹63,052 crore and a mojo score upgrade from Buy to Strong Buy (85.0) on 11 November 2025, investors are increasingly confident in its growth prospects.

Such a surge in OI often precedes significant price moves, as it indicates that traders are committing capital to directional bets rather than merely hedging. The futures and options market activity reveals that participants are likely anticipating continued strength in aluminium prices and favourable industry fundamentals, including demand recovery and supply constraints in the non-ferrous metals space.

Sectoral Context and Comparative Performance

The Aluminium & Aluminium Products sector has been gaining traction, with a 3.38% rise on the day, supported by improving global demand and supply-side tightness. NATIONALUM’s outperformance relative to its sector peers by 2.76% on the day and its sustained gains over the past week highlight its strong positioning within the industry.

Compared to the broader market, the Sensex declined by 0.32% on the same day, underscoring the stock’s defensive qualities and sector-specific strength. This divergence further emphasises the attractiveness of NATIONALUM as a mid-cap play in the non-ferrous metals space, especially given its liquidity profile that comfortably supports trade sizes of up to ₹10.46 crore based on 2% of the five-day average traded value.

Mojo Score Upgrade and Investment Implications

MarketsMOJO’s recent upgrade of NATIONALUM’s mojo grade from Buy to Strong Buy on 11 November 2025 reflects improved fundamentals and technical strength. The mojo score of 85.0 is a robust endorsement, signalling strong buy-side interest and favourable risk-reward dynamics. The company’s market cap grade of 2 indicates a mid-cap classification, which often offers a balance of growth potential and liquidity.

Investors should note the combination of rising open interest, strong volume, and price momentum as a positive signal for potential further appreciation. However, the decline in delivery volumes suggests some caution, as it may indicate that the rally is currently driven more by short-term traders and derivatives players rather than sustained institutional accumulation.

Outlook and Strategic Considerations

Given the current market positioning, NATIONALUM appears poised for continued gains, supported by strong derivatives market activity and positive technical indicators. The stock’s ability to maintain levels above key moving averages and its recent 52-week high suggest that the uptrend remains intact.

Investors should monitor open interest trends closely, as sustained increases in OI alongside rising prices typically confirm bullish sentiment. Conversely, any sharp decline in OI or volume could signal profit-taking or a potential reversal. The stock’s dividend yield of 3.17% also provides an attractive income component, enhancing its appeal in a mid-cap non-ferrous metals portfolio.

Overall, National Aluminium Company Ltd’s recent surge in open interest and volume, combined with its mojo upgrade and sector outperformance, make it a compelling candidate for investors seeking exposure to the aluminium sector’s growth story. However, prudent risk management and attention to delivery volumes and broader market cues remain essential.

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