Open Interest and Volume Dynamics
On 29 Jan 2026, NATIONALUM’s open interest in derivatives rose sharply by 4,573 contracts, a 19.21% increase from the previous day’s 23,800 contracts to 28,373. This notable expansion in OI was accompanied by a volume of 32,941 contracts, indicating active trading interest. The futures segment alone accounted for a value of approximately ₹1,00,507 lakhs, while the options segment’s notional value stood at a staggering ₹43,353 crores, culminating in a total derivatives value of ₹1,16,935 lakhs.
This surge in open interest, alongside elevated volumes, typically reflects fresh positions being established rather than existing ones being squared off. Such a pattern often points to a strong conviction in the underlying asset’s future direction, in this case, a bullish bias given the concurrent price appreciation.
Price Performance and Technical Strength
NATIONALUM’s price momentum has been impressive, hitting a new 52-week high of ₹423.55 during intraday trading, marking a 4.28% gain on the day. The stock has outperformed its sector, Aluminium & Aluminium Products, which gained 2.67%, and the broader Sensex, which declined by 0.27% on the same day. Over the past six consecutive trading sessions, NATIONALUM has delivered a robust 17.51% return, underscoring sustained buying interest.
Technically, the stock is trading comfortably above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling strong upward momentum and positive investor sentiment. The rising delivery volume of 60.15 lakh shares on 28 Jan, up 3.38% against the five-day average, further confirms genuine investor participation rather than speculative trading.
Market Positioning and Directional Bets
The sharp increase in derivatives open interest, combined with rising prices and volumes, suggests that market participants are positioning for further upside in NATIONALUM. The 19.21% jump in OI indicates that fresh long positions are being built, reflecting confidence in the company’s near-term prospects.
Given the stock’s strong fundamentals and sectoral tailwinds in non-ferrous metals, traders appear to be betting on continued price appreciation. The underlying value of ₹421 at the time of analysis, coupled with the stock’s breakout to new highs, supports the view that bullish momentum is likely to persist.
Our latest monthly pick, this Small Cap from Oil Exploration/Refineries, is showing strong performance since announcement! See why our Investment Committee chose it after screening 50+ candidates.
- - Investment Committee approved
- - 50+ candidates screened
- - Strong post-announcement performance
Fundamental and Market Context
National Aluminium Company Ltd operates in the non-ferrous metals sector, a segment currently benefiting from rising aluminium prices and increased industrial demand. With a market capitalisation of ₹77,175 crores, NATIONALUM is classified as a mid-cap stock but boasts a strong mojo score of 84.0, upgraded recently from a Buy to a Strong Buy rating on 11 Nov 2025.
This upgrade reflects improved financial metrics, operational efficiencies, and positive earnings outlook. The company’s market cap grade stands at 2, indicating solid mid-cap status with ample liquidity, as evidenced by the ability to handle trade sizes of up to ₹13.87 crores based on 2% of the five-day average traded value.
Sectoral and Broader Market Comparison
While the Aluminium & Aluminium Products sector has gained 2.67% on the day, NATIONALUM’s 3.96% one-day return and 4.44% day change demonstrate its outperformance within the industry. This relative strength is a positive signal for investors seeking exposure to the non-ferrous metals space with a focus on quality and momentum.
In contrast, the Sensex’s marginal decline of 0.27% highlights the stock’s resilience amid broader market volatility, further reinforcing the bullish narrative.
Implications for Investors and Traders
The confluence of rising open interest, strong volume, and price appreciation suggests that institutional and retail investors are increasingly confident in NATIONALUM’s prospects. The derivatives market activity points to directional bets favouring further upside, making the stock an attractive candidate for momentum-based strategies.
However, investors should remain mindful of potential volatility inherent in commodity-linked stocks and monitor global aluminium price trends, input cost fluctuations, and macroeconomic factors that could impact the sector.
Want to dive deeper on National Aluminium Company Ltd? There's a real-time research report diving right into the fundamentals, valuations, peer comparison, financials, technicals and much more!
- - Real-time research report
- - Complete fundamental analysis
- - Peer comparison included
Outlook and Conclusion
National Aluminium Company Ltd’s recent surge in derivatives open interest, combined with strong price performance and sectoral tailwinds, positions it favourably for continued gains. The upgrade to a Strong Buy rating and a mojo score of 84.0 reflect robust fundamentals and positive market sentiment.
Investors and traders should consider the stock’s liquidity, technical strength, and improving delivery volumes as indicators of sustained interest. While risks remain from commodity price volatility and global economic factors, the current market positioning suggests that NATIONALUM is well placed to capitalise on the ongoing bullish momentum in the non-ferrous metals sector.
Overall, the data points to a constructive outlook, with fresh long positions being established in the derivatives market signalling confidence in further upside potential.
Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →
