Open Interest and Volume Dynamics
On 29 Jan 2026, NATIONALUM’s open interest (OI) in futures and options contracts rose sharply by 4,891 contracts, a 20.55% increase from the previous day’s 23,800 to 28,691. This notable expansion in OI was accompanied by a substantial volume of 52,274 contracts traded, underscoring active participation from both institutional and retail investors.
The futures value stood at approximately ₹1,60,462.7 lakhs, while the options segment exhibited an even larger notional value of ₹69,125.8 crores, reflecting the stock’s prominence in the derivatives market. The combined total derivatives value reached ₹1,87,358.0 lakhs, indicating strong liquidity and interest in hedging or speculative strategies.
Price Performance and Technical Strength
National Aluminium Company Ltd hit a new 52-week high of ₹431.5 during intraday trading, marking a 6.24% gain on the day and outperforming its sector by 2.3%. The stock has recorded six consecutive days of gains, delivering a robust 19.43% return over this period. This sustained upward momentum is supported by the stock trading above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a strong bullish trend.
Interestingly, the weighted average price suggests that a significant portion of volume was traded closer to the day’s low price, which may indicate accumulation by buyers at relatively lower levels within the trading session. This pattern often precedes further upward price movement as demand absorbs available supply.
Sector and Market Context
The Aluminium & Aluminium Products sector has gained 3.1% on the day, with NATIONALUM outperforming both its sector and the broader Sensex, which rose by a modest 0.38%. The stock’s mid-cap market capitalisation stands at ₹77,175 crores, placing it among the more sizeable players in the non-ferrous metals industry.
Investor participation has also increased, with delivery volumes rising to 60.15 lakh shares on 28 Jan, a 3.38% increase over the five-day average. This suggests that investors are not only trading the stock actively but are also willing to hold shares, reflecting confidence in the company’s fundamentals and outlook.
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Market Positioning and Directional Bets
The sharp increase in open interest alongside rising prices and volumes points to a bullish market stance on NATIONALUM. Traders appear to be building long positions, anticipating further upside potential. The stock’s mojo score of 84.0, upgraded from a previous “Buy” to a “Strong Buy” rating on 11 Nov 2025, reinforces this positive outlook.
Such a rating upgrade typically reflects improvements in key financial metrics, operational performance, and favourable sectoral trends. The company’s market cap grade of 2 indicates a mid-cap status with adequate liquidity, making it attractive for both institutional and retail investors seeking exposure to the aluminium sector.
Options market activity further supports this view, with the large notional value in options contracts suggesting that investors are employing strategies such as call buying or bull spreads to capitalise on expected price appreciation. The combination of rising OI and volume in both futures and options is a classic indicator of strengthening conviction among market participants.
Liquidity and Trading Viability
Liquidity remains robust, with the stock’s traded value comfortably supporting trade sizes up to ₹13.87 crores based on 2% of the five-day average traded value. This ensures that large trades can be executed without significant price impact, an important consideration for institutional investors and fund managers.
Moreover, the stock’s consistent outperformance relative to the sector and benchmark indices suggests it is a preferred choice within the non-ferrous metals space, benefiting from both sector tailwinds and company-specific catalysts.
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Outlook and Investor Considerations
Given the current trajectory, National Aluminium Company Ltd appears well-positioned to sustain its upward momentum. The confluence of rising open interest, strong volume, and technical strength suggests that investors are increasingly confident in the stock’s near-term prospects.
However, investors should remain mindful of broader macroeconomic factors such as global aluminium demand, commodity price fluctuations, and regulatory developments that could impact the non-ferrous metals sector. Additionally, profit-taking after a strong rally could introduce short-term volatility.
For those considering fresh exposure, the stock’s liquidity and consistent outperformance make it a compelling candidate for inclusion in diversified portfolios targeting industrial metals and materials. The recent upgrade to a “Strong Buy” rating by MarketsMOJO further validates the stock’s appeal from a fundamental and technical perspective.
Summary
National Aluminium Company Ltd’s derivatives market activity reveals a clear bullish bias, with open interest surging by over 20% alongside strong volume and price gains. The stock’s technical indicators and mojo score upgrade reinforce a positive outlook, supported by healthy liquidity and sectoral tailwinds. Investors should monitor ongoing market positioning and sector developments to capitalise on potential upside while managing risk prudently.
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