Open Interest and Volume Dynamics
On 6 January 2026, NATIONALUM’s open interest (OI) in derivatives rose sharply by 9,050 contracts, a 29.6% increase from the previous day’s 30,577 to 39,627. This notable expansion in OI is accompanied by a substantial volume of 1,04,457 contracts traded, reflecting active participation from both institutional and retail investors. The futures segment alone accounted for a value of approximately ₹12,021.28 crores, while options contributed an overwhelming ₹12,833.05 crores, culminating in a total derivatives value of ₹15,043.98 crores.
This spike in open interest, alongside elevated volumes, typically indicates fresh capital inflows and new directional bets rather than mere position unwinding. Market participants appear to be positioning for further upside, as evidenced by the stock’s recent price action and technical indicators.
Price Performance and Technical Strength
National Aluminium Company Ltd has been on a strong upward trajectory, hitting a new 52-week high of ₹351.7 during intraday trading on the same day. The stock outperformed its sector by 2.49%, with a day gain of 4.43%, and has recorded a consecutive four-day rally, delivering a cumulative return of 9.86%. It currently trades above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained bullish momentum.
The underlying value stands at ₹344, reinforcing the stock’s premium valuation in the derivatives market. The Aluminium & Aluminium Products sector itself gained 2.05% on the day, but NATIONALUM’s outperformance highlights its leadership within the space.
Investor Participation and Liquidity Considerations
Despite the strong price and derivatives activity, delivery volumes have seen a decline, with 57.39 lakh shares delivered on 5 January, down 13.26% against the five-day average. This suggests that while speculative interest is rising in the derivatives market, actual shareholding changes are more cautious. The stock remains sufficiently liquid, with a 5-day average traded value supporting trade sizes up to ₹10.46 crores, ensuring ease of entry and exit for investors.
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Market Positioning and Directional Bets
The surge in open interest, combined with rising prices and volumes, strongly suggests that traders are building fresh long positions, anticipating further appreciation in NATIONALUM’s share price. The stock’s mojo score was recently upgraded from 70 (Buy) to 85 (Strong Buy) on 11 November 2025, reflecting improved fundamentals and positive market sentiment. This upgrade is supported by a market capitalisation of ₹63,052 crores, placing it firmly in the mid-cap category with a market cap grade of 2.
Options market data reveals a substantial notional value of ₹12,833 crores, indicating active call and put writing strategies. The elevated option values suggest that investors are hedging their positions or speculating on volatility, but the overall directional bias remains bullish given the price and futures activity.
Dividend Yield and Sector Context
National Aluminium Company Ltd offers a healthy dividend yield of 3.17%, which adds to its appeal for income-focused investors amid the rally. The stock’s outperformance relative to the Aluminium & Aluminium Products sector, which gained 2.05% on the day, highlights its relative strength and leadership within the non-ferrous metals industry.
However, the recent dip in delivery volumes signals some caution among long-term holders, possibly reflecting profit-booking or selective participation. This divergence between derivatives activity and cash market delivery volumes warrants close monitoring in the coming sessions.
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Outlook and Investor Takeaways
Given the strong open interest growth, robust volume patterns, and positive price momentum, National Aluminium Company Ltd is positioned favourably for near-term gains. The upgrade to a Strong Buy mojo grade reflects confidence in the company’s earnings prospects and sectoral tailwinds. Investors should note the stock’s liquidity and dividend yield as additional positives supporting medium-term accumulation.
Nevertheless, the divergence between derivatives enthusiasm and falling delivery volumes suggests some caution is warranted. Market participants should monitor upcoming quarterly results and global aluminium price trends, which could influence the stock’s trajectory. Overall, the current market positioning indicates a clear directional bias towards upside, supported by both technical and fundamental factors.
In summary, National Aluminium Company Ltd’s derivatives market activity reveals a surge in bullish bets, underpinned by strong price action and sectoral strength. This makes it a compelling candidate for investors seeking exposure to the non-ferrous metals space with a mid-cap growth orientation.
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