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

Open Interest and Volume Dynamics

On 29 Jan 2026, National Aluminium’s open interest (OI) in futures and options contracts rose sharply by 4,535 contracts, a 19.05% increase from the previous day’s 23,800 contracts to 28,335. This substantial rise in OI accompanied a volume of 42,075 contracts, indicating that fresh positions are being established rather than existing ones being squared off. The futures value traded stood at ₹1,30,530.56 lakhs, while the options segment recorded an astronomical notional value of approximately ₹55,293.60 crores, culminating in a total derivatives turnover of ₹1,51,833.83 lakhs.

The underlying stock price also reflected this bullish sentiment, hitting a new 52-week high of ₹427.90 during intraday trade, marking a 5.36% gain on the day. Over the past six consecutive sessions, National Aluminium has delivered a remarkable 19.01% return, outperforming its sector by 2.07% and the broader Sensex by a wide margin. The stock’s weighted average price suggests that a significant volume was traded closer to the lower end of the day’s price range, hinting at strong buying interest at support levels.

Market Positioning and Technical Strength

Technically, National Aluminium is trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — underscoring a robust uptrend. The Aluminium & Aluminium Products sector itself gained 3.08% on the day, but National Aluminium’s outperformance highlights its leadership within the space. Delivery volumes have also risen, with 60.15 lakh shares delivered on 28 Jan, a 3.38% increase over the five-day average, signalling genuine investor participation rather than speculative trading.

Liquidity remains ample, with the stock’s traded value supporting a trade size of approximately ₹13.87 crore based on 2% of the five-day average traded value. This liquidity profile ensures that institutional investors can enter or exit positions without significant price impact, further encouraging participation.

Implications of the Open Interest Surge

The 19.05% jump in open interest is a clear indication that market participants are increasingly confident in the stock’s upward trajectory. Rising OI alongside rising prices typically signals fresh buying interest and accumulation by traders expecting further gains. This contrasts with scenarios where OI falls as prices rise, which would suggest profit-taking or short-covering.

Given the stock’s recent outperformance and technical strength, the surge in derivatives activity likely reflects directional bets on continued appreciation. The futures and options market participants appear to be positioning for a sustained rally, supported by improving fundamentals and sector tailwinds.

Mojo Score Upgrade and Market Sentiment

National Aluminium’s Mojo Score has been upgraded from 70 (Buy) to 84 (Strong Buy) as of 11 Nov 2025, reflecting improved financial metrics, valuation attractiveness, and positive earnings momentum. This upgrade aligns with the recent surge in open interest and price action, reinforcing the stock’s appeal to both retail and institutional investors.

The company’s market capitalisation stands at ₹77,175 crore, categorising it as a mid-cap stock with significant growth potential. The sector’s positive momentum and National Aluminium’s leadership position within the non-ferrous metals industry further bolster its investment case.

Volume Patterns and Investor Participation

Analysis of volume patterns reveals that the stock’s weighted average price was closer to the day’s low, suggesting that buyers were active at lower price points, absorbing selling pressure. This behaviour is typical of accumulation phases where investors build positions ahead of anticipated upside moves.

Moreover, the rising delivery volumes indicate that investors are not merely trading intraday but are willing to hold shares, signalling conviction in the stock’s medium-term prospects. This trend is supportive of a sustainable rally rather than a short-lived spike.

Sectoral and Broader Market Context

Within the non-ferrous metals sector, National Aluminium’s outperformance is notable. The sector gained 3.08% on the day, while the Sensex managed a modest 0.19% rise. This relative strength highlights the stock’s leadership and the market’s preference for quality mid-cap names with strong fundamentals and technical momentum.

Investors should also consider the broader macroeconomic environment, including aluminium demand trends, global commodity prices, and domestic industrial activity, all of which influence National Aluminium’s earnings outlook. The company’s ability to maintain cost efficiencies and capitalise on favourable market conditions will be critical in sustaining its upward trajectory.

Outlook and Investor Considerations

Given the strong open interest growth, rising volumes, and positive price action, National Aluminium appears well-positioned for further gains in the near term. The stock’s technical indicators and upgraded Mojo Grade of Strong Buy support a bullish stance. However, investors should remain mindful of potential volatility inherent in commodity-linked stocks and monitor sectoral developments closely.

For traders, the derivatives market activity suggests opportunities to capitalise on momentum through futures and options strategies, while long-term investors may find value in accumulating shares on dips, supported by improving fundamentals and market positioning.

Overall, the surge in open interest combined with sustained price appreciation and robust volume patterns signals a strong directional bet on National Aluminium’s continued outperformance within the non-ferrous metals sector.

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