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

Open Interest and Volume Dynamics

On 29 Jan 2026, NATIONALUM’s open interest (OI) in the futures and options market rose sharply by 2,708 contracts, an 11.38% increase from the previous day’s 23,800 contracts to 26,508. This notable expansion in OI was accompanied by a futures volume of 15,870 contracts, reflecting active trading interest. The combined futures and options value stood at approximately ₹6,167 crores, with futures contributing ₹541 crores and options an overwhelming ₹20,178 crores in notional value, underscoring the stock’s liquidity and investor focus.

The rising OI alongside strong volume typically indicates fresh positions being established rather than existing ones being squared off. This pattern often precedes sustained price trends, suggesting that market participants are positioning for further upside in NATIONALUM.

Price Performance and Technical Strength

Supporting the derivatives activity, NATIONALUM hit a new 52-week high of ₹421 during intraday trading, marking a 3.66% gain on the day and outperforming its sector by 0.93%. The stock has been on a consistent upward trajectory, gaining 16.73% over the past six trading sessions. It currently trades above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling robust technical strength and positive momentum.

The Aluminium & Aluminium Products sector itself has gained 2.41% recently, but NATIONALUM’s outperformance highlights its leadership within the space. The stock’s delivery volume on 28 Jan was 60.15 lakh shares, a 3.38% increase over the five-day average, indicating rising investor participation and confidence in the stock’s prospects.

Market Positioning and Directional Bets

The surge in open interest combined with rising prices and volumes suggests that traders are increasingly bullish on NATIONALUM. The increase in OI by over 11% is a strong signal that new long positions are being built, reflecting expectations of further price appreciation. This is corroborated by the stock’s consistent gains and technical indicators.

Given the stock’s mid-cap status with a market capitalisation of ₹74,604 crores and a Mojo Score of 84.0, upgraded recently from a Buy to a Strong Buy on 11 Nov 2025, the market’s positive stance is well supported by fundamental and technical factors. The Mojo Grade upgrade reflects improved financial health, valuation metrics, and growth prospects, which likely underpin the increased derivatives activity.

Liquidity and Trading Viability

NATIONALUM’s liquidity profile remains healthy, with the stock’s traded value supporting a trade size of approximately ₹13.87 crores based on 2% of the five-day average traded value. This liquidity ensures that institutional and retail investors can execute sizeable trades without significant market impact, further encouraging active participation in both cash and derivatives markets.

The stock’s day change of 3.15% and one-day return of 3.21% contrast favourably with the sector’s 1.92% gain and the Sensex’s decline of 0.48%, highlighting NATIONALUM’s relative strength amid broader market volatility.

Implications for Investors and Traders

The combination of rising open interest, strong volume, and positive price action suggests that market participants are positioning for continued gains in NATIONALUM. For investors, this signals a favourable environment supported by both technical momentum and improving fundamentals, as reflected in the recent Mojo Grade upgrade to Strong Buy.

Traders may interpret the open interest surge as confirmation of bullish sentiment, potentially prompting further long positions in futures and call options. However, given the stock’s recent sharp rise, prudent risk management remains essential to navigate any short-term volatility or profit-taking.

Sector and Peer Context

Within the Non-Ferrous Metals industry, NATIONALUM’s performance stands out, driven by robust demand dynamics for aluminium products and favourable macroeconomic factors. The sector’s 2.41% gain over recent sessions reflects broader optimism, but NATIONALUM’s outperformance and derivatives market activity indicate it is a preferred pick among investors.

Its mid-cap status and strong Mojo Score of 84.0 place it favourably against peers, with the recent upgrade from Buy to Strong Buy on 11 Nov 2025 signalling enhanced confidence in its growth trajectory and valuation appeal.

Outlook and Conclusion

National Aluminium Company Ltd’s recent surge in open interest and volume in the derivatives market, coupled with strong price performance and technical indicators, point to a sustained bullish outlook. The stock’s leadership within the Non-Ferrous Metals sector, combined with improved investor participation and liquidity, supports the case for continued upside potential.

Investors should monitor ongoing open interest trends and price action closely, as these will provide further clues on market positioning and sentiment. The recent Mojo Grade upgrade to Strong Buy reinforces the stock’s appeal from a fundamental perspective, making it a compelling candidate for both medium and long-term portfolios.

While the derivatives market activity suggests directional bets favouring further gains, prudent risk management and awareness of sectoral and macroeconomic developments remain essential to navigate potential volatility.

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