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 derivatives rose sharply by 4,110 contracts, a 17.27% increase from the previous day’s 23,800 to 27,910. This notable expansion in OI was accompanied by a substantial volume of 26,531 contracts traded, reflecting active participation in both futures and options segments. The futures value stood at ₹83,943.996 lakhs, while the options value was an impressive ₹34,524,155,475 lakhs, culminating in a total derivatives value of ₹97,011.11325 lakhs.

This surge in open interest alongside strong volume typically indicates fresh positions being initiated rather than existing ones being squared off, often interpreted as a confirmation of the prevailing trend. In NATIONALUM’s case, the trend is decidedly bullish, supported by the stock hitting a new 52-week high of ₹422.3 during intraday trading, marking a 3.98% gain on the day.

Price Performance and Market Positioning

The stock has been on a consistent upward trajectory, registering gains for six consecutive sessions and delivering a robust 17.55% return over this period. NATIONALUM outperformed its sector, Aluminium & Aluminium Products, which itself gained 2.74% on the day, and the broader Sensex, which declined by 0.56%. The stock’s 1-day return of 3.78% also surpassed the sector’s 2.86% gain, underscoring its relative strength.

Further technical validation comes from the stock trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained bullish momentum and strong investor confidence. The underlying value of the stock stood at ₹421, closely aligned with the intraday high, reflecting tight price action and reduced volatility.

Investor Participation and Liquidity

Investor interest is also evident in the rising delivery volumes, which reached 60.15 lakh shares on 28 Jan 2026, a 3.38% increase over the 5-day average delivery volume. This suggests that investors are not merely trading for short-term gains but are increasingly holding shares, reinforcing the bullish narrative.

Liquidity remains healthy, with the stock’s traded value supporting a trade size of approximately ₹13.87 crore based on 2% of the 5-day average traded value. This level of liquidity is conducive for institutional participation and large trades without significant price impact.

Mojo Score Upgrade and Market Sentiment

Reflecting the positive momentum, National Aluminium Company Ltd’s Mojo Score was upgraded from 70 (Buy) to 84 (Strong Buy) on 11 Nov 2025. This upgrade highlights improved fundamentals, technical strength, and favourable market positioning. The company’s market capitalisation stands at ₹77,175 crore, categorising it as a mid-cap stock with solid growth prospects within the non-ferrous metals sector.

The Mojo Grade upgrade signals enhanced investor confidence and aligns with the observed surge in derivatives activity, suggesting that market participants are positioning for further upside in the stock.

Directional Bets and Derivatives Positioning

The sharp increase in open interest, coupled with rising volumes and price appreciation, points to a predominance of bullish directional bets in the derivatives market. Traders appear to be initiating fresh long positions, anticipating continued upward movement in NATIONALUM’s share price. The options market activity, with a substantial notional value, further supports this view, as call option buying likely dominates, reflecting optimism about near-term gains.

Such positioning is consistent with the stock’s technical breakout above key resistance levels and the establishment of new highs. The sustained accumulation of open interest suggests that the current rally is underpinned by genuine demand rather than short-covering or speculative unwinding.

Sectoral Context and Comparative Performance

Within the non-ferrous metals sector, National Aluminium Company Ltd’s outperformance is noteworthy. While the Aluminium & Aluminium Products sector gained 2.74% on the day, NATIONALUM’s 3.78% rise and sustained six-day rally underscore its leadership. This relative strength is a positive indicator for investors seeking exposure to the metals space, particularly amid global demand recovery and supply constraints impacting aluminium prices.

Moreover, the stock’s ability to maintain gains above all major moving averages suggests robust technical health, which may attract further institutional interest and momentum traders.

Risks and Considerations

Despite the bullish signals, investors should remain mindful of potential volatility inherent in commodity-linked stocks like NATIONALUM. Aluminium prices are subject to global economic conditions, trade policies, and raw material cost fluctuations. Additionally, derivatives positioning can reverse quickly if market sentiment shifts, necessitating close monitoring of open interest trends and volume patterns.

Nonetheless, the current data points to a strong bullish consensus, supported by fundamental upgrades and technical validation.

Outlook

Given the strong open interest growth, rising volumes, and positive price action, National Aluminium Company Ltd appears well-positioned for further gains in the near term. The upgrade to a Strong Buy Mojo Grade and the stock’s leadership within its sector reinforce this outlook. Investors and traders should watch for continued accumulation in derivatives and sustained price momentum as confirmation of the ongoing uptrend.

Overall, the surge in derivatives open interest combined with robust fundamentals and technical strength suggests that NATIONALUM is attracting significant bullish bets, making it a compelling candidate for investors seeking exposure to the non-ferrous metals sector’s growth story.

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