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

Open Interest and Volume Dynamics

On 31 Dec 2025, NATIONALUM’s open interest (OI) in derivatives rose sharply by 2,835 contracts, a 10.82% increase from the previous day’s 26,204 to 29,039. This uptick in OI was accompanied by a robust volume of 25,958 contracts, indicating heightened trading activity and fresh positions being established rather than merely unwinding existing ones.

The futures value stood at ₹39,993.89 lakhs, while the options segment exhibited an extraordinarily high notional value of approximately ₹28,158.77 crores, underscoring the significant interest in the stock’s derivatives. The combined total derivatives value was ₹46,280.68 lakhs, reflecting strong liquidity and active participation from institutional and retail traders alike.

Price and Technical Indicators

Despite a marginal day-on-day price decline of 0.11%, NATIONALUM remains resilient, trading above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a sustained uptrend. The stock hit a new 52-week high of ₹319.85 on the same day, reinforcing bullish sentiment.

Investor participation is on the rise, with delivery volumes reaching 98.77 lakh shares on 30 Dec, a significant 47.79% increase over the five-day average. This suggests that investors are not only trading the stock actively but are also willing to hold shares, indicating confidence in the company’s medium to long-term prospects.

Market Capitalisation and Sector Context

National Aluminium Company Ltd is classified as a mid-cap stock with a market capitalisation of ₹58,304 crore. Operating within the non-ferrous metals industry, the company’s performance is closely tied to global commodity cycles and domestic industrial demand. The sector’s 1-day return was 0.07%, slightly outperforming NATIONALUM’s marginal dip, while the broader Sensex gained 0.50%, reflecting a generally positive market environment.

Interpreting the Open Interest Surge

The 10.82% increase in open interest is a clear indication that new positions are being created rather than closed out. This typically reflects a strengthening conviction among traders regarding the stock’s future direction. Given the stock’s recent new high and strong technical positioning, it is plausible that the majority of these new contracts are bullish bets, anticipating further upside.

Moreover, the substantial options market value suggests that traders are actively using options strategies to hedge or leverage their positions. The high notional value in options could imply a mix of directional bets and volatility plays, with market participants positioning for potential price swings in the near term.

Investor Sentiment and Dividend Appeal

National Aluminium’s dividend yield of 3.32% at the current price adds to its attractiveness, especially in a mid-cap space where steady income streams are valued. The combination of rising investor participation, strong technicals, and a healthy dividend yield creates a compelling case for investors seeking both growth and income.

Liquidity metrics further support active trading, with the stock’s liquidity sufficient to accommodate trade sizes of up to ₹10.28 crore based on 2% of the five-day average traded value. This ensures that institutional investors can enter or exit positions without significant market impact.

Mojo Score and Analyst Ratings

MarketsMOJO assigns NATIONALUM a robust Mojo Score of 85.0, upgrading its grade from Buy to Strong Buy as of 11 Nov 2025. This upgrade reflects improved fundamentals, technical momentum, and valuation metrics. The market cap grade stands at 2, indicating a mid-cap classification with solid growth potential.

The Strong Buy rating aligns with the observed market activity and technical signals, suggesting that the stock is well-positioned to benefit from favourable sector dynamics and company-specific catalysts.

Potential Directional Bets and Market Positioning

The derivatives data suggests that traders are positioning for a continuation of the recent uptrend in NATIONALUM. The rising open interest combined with strong volume and a new 52-week high typically signals bullish sentiment. Market participants may be anticipating positive developments such as improved aluminium demand, favourable commodity prices, or company-specific operational efficiencies.

However, the slight price dip of 0.11% on the day indicates some profit-taking or short-term consolidation, which is healthy in a trending market. The stock’s ability to hold above key moving averages supports the view that any pullbacks may be limited and could present buying opportunities.

Investors should also monitor global aluminium prices and macroeconomic indicators, as these factors heavily influence the non-ferrous metals sector. Any shifts in trade policies, supply disruptions, or demand fluctuations could impact NATIONALUM’s trajectory.

Conclusion

National Aluminium Company Ltd’s recent surge in open interest and volume in the derivatives market, coupled with strong technicals and an upgraded Mojo Grade of Strong Buy, highlights growing investor confidence. The stock’s new 52-week high, rising delivery volumes, and attractive dividend yield further reinforce its appeal.

While short-term volatility cannot be ruled out, the overall market positioning suggests that investors are betting on continued strength in NATIONALUM. For those seeking exposure to the non-ferrous metals sector with a mid-cap growth profile, this stock merits close attention.

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