National Aluminium Company Ltd Sees Sharp Open Interest Surge Signalling Bullish Market Positioning

Open Interest and Volume Dynamics

On 25 Feb 2026, NATIONALUM's open interest in futures and options contracts rose sharply by 2,745 contracts, a 12.42% increase from the previous day's 22,093 to 24,838. This notable expansion in OI accompanied a volume of 28,584 contracts, underscoring active trading interest. The futures segment alone accounted for a value of ₹75,717.38 lakhs, while the options segment's notional value stood at an impressive ₹32,040.91 crores, culminating in a total derivatives value of approximately ₹85,038.54 lakhs.

This surge in open interest, coupled with elevated volumes, typically indicates fresh positions being established rather than existing ones being squared off. Such a pattern often reflects a strong conviction among traders about the stock's near-term price trajectory.

Price Performance and Market Positioning

NATIONALUM's price action has been bullish, with the stock gaining 4.62% on the day, outperforming the Aluminium & Aluminium Products sector's 2.03% rise and the broader Sensex's modest 0.18% advance. The stock has recorded consecutive gains over the past two sessions, delivering a cumulative return of 6.02%. Intraday, it touched a high of ₹360.80, marking a 5.19% increase from the previous close.

Technically, the stock trades above its 5-day, 50-day, 100-day, and 200-day moving averages, signalling sustained upward momentum. However, it remains slightly below its 20-day moving average, suggesting some short-term consolidation or resistance. This technical setup often attracts momentum traders looking for breakout opportunities.

Investor Participation and Delivery Volumes

Investor engagement has intensified, as evidenced by a delivery volume of 29.7 lakh shares on 24 Feb 2026, which represents a 20.51% increase over the five-day average delivery volume. This rise in delivery volume indicates genuine buying interest rather than speculative intraday trading, reinforcing the bullish sentiment.

Liquidity remains adequate for sizeable trades, with the stock's average traded value supporting transactions worth approximately ₹4.13 crores based on 2% of the five-day average traded value. This liquidity profile favours institutional participation and reduces execution risk for larger orders.

Mojo Score and Rating Revision

National Aluminium Company Ltd currently holds a Mojo Score of 72.0, reflecting a positive outlook based on a comprehensive assessment of fundamentals, technicals, and market sentiment. The stock's Mojo Grade was recently revised from a Strong Buy to a Buy on 23 Feb 2026, signalling a slight moderation in conviction but maintaining a favourable stance for investors.

Its market capitalisation stands at ₹65,090 crores, categorising it as a mid-cap stock within the non-ferrous metals industry. The company also offers an attractive dividend yield of 3.2% at the current price level, adding to its appeal for income-focused investors.

Sectoral Context and Broader Market Trends

The Aluminium & Aluminium Products sector has gained 2.03% on the day, supported by improving global demand prospects and easing supply constraints. NATIONALUM's outperformance relative to its sector peers suggests it is benefiting from company-specific catalysts alongside favourable macroeconomic factors.

Moreover, the broader market environment remains cautiously optimistic, with the Sensex inching up by 0.18%. This backdrop of selective sectoral strength and stock-specific momentum is conducive to further accumulation in fundamentally sound names like NATIONALUM.

Interpreting the Open Interest Surge

The 12.42% increase in open interest is a critical indicator of shifting market positioning. Such a rise often points to new long positions being initiated, especially when accompanied by rising prices and volumes, as seen in NATIONALUM's case. This suggests that traders and investors are increasingly bullish on the stock's near-term prospects.

Alternatively, the increase could also reflect short sellers adding positions, but given the concurrent price appreciation and delivery volume uptick, the dominant interpretation leans towards fresh buying interest. This dynamic is crucial for market participants seeking to gauge the strength and sustainability of the current rally.

Implications for Investors and Traders

For investors, the combination of rising open interest, strong price performance, and increased delivery volumes signals a favourable environment to consider adding or holding positions in NATIONALUM. The stock's liquidity and dividend yield further enhance its attractiveness as a core portfolio holding within the non-ferrous metals sector.

Traders may view the current setup as an opportunity to capitalise on momentum, especially given the stock's technical positioning above key moving averages and the recent upgrade to a Buy rating. However, caution is warranted around the 20-day moving average resistance, which could act as a short-term hurdle.

Overall, the data suggests a constructive market consensus on NATIONALUM's prospects, with directional bets increasingly skewed towards the upside.

Outlook and Conclusion

National Aluminium Company Ltd's recent surge in open interest and volume reflects a meaningful shift in market sentiment, underpinned by solid fundamentals and technical strength. The stock's outperformance relative to its sector and the broader market, combined with rising investor participation, points to sustained bullish momentum in the near term.

While the downgrade from Strong Buy to Buy indicates some moderation in enthusiasm, the overall outlook remains positive, supported by a healthy dividend yield and robust liquidity. Investors and traders alike should monitor open interest trends and price action closely to capitalise on emerging opportunities in this key non-ferrous metals player.

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