National Aluminium Company Ltd Sees Significant Open Interest Surge Amid Bullish Market Momentum

Open Interest and Volume Dynamics

On 25 Feb 2026, NATIONALUM’s open interest (OI) in derivatives rose sharply by 2,256 contracts, a 10.21% increase from the previous day’s 22,093 to 24,349. This rise in OI was accompanied by a robust volume of 19,971 contracts, indicating heightened trading activity. The futures segment alone accounted for a value of approximately ₹50,864 lakhs, while the options segment’s notional value stood at an impressive ₹22,560 crore, culminating in a total derivatives value of ₹57,497 lakhs.

The underlying stock price closed at ₹358, having touched an intraday high of ₹358.75, marking a 4.59% gain on the day. This price action outpaced the Aluminium & Aluminium Products sector, which gained 2.53%, and the broader Sensex, which rose by 0.64%. NATIONALUM’s one-day return of 4.48% also outperformed the sector’s 2.48% gain, underscoring the stock’s relative strength.

Market Positioning and Investor Sentiment

The increase in open interest alongside rising volumes typically signals fresh capital entering the market, often reflecting new directional bets rather than mere position rollovers. In NATIONALUM’s case, the 10.21% OI growth suggests that traders are building positions, likely anticipating further upside. This is supported by the stock’s consecutive two-day gain, delivering a cumulative return of 5.66%, which has attracted rising investor participation.

Delivery volumes on 24 Feb surged to 29.7 lakh shares, a 20.51% increase over the five-day average, indicating genuine buying interest rather than speculative intraday trading. Such a rise in delivery volume is a positive sign of conviction among long-term investors, reinforcing the bullish narrative.

Technical and Fundamental Context

Technically, NATIONALUM’s price is trading above its 5-day, 50-day, 100-day, and 200-day moving averages, though it remains slightly below the 20-day moving average. This positioning suggests a strong medium- to long-term uptrend with some short-term consolidation. The stock’s high dividend yield of 3.2% at the current price adds to its appeal, providing income alongside capital appreciation potential.

From a fundamental perspective, NATIONALUM is classified as a mid-cap company with a market capitalisation of ₹65,090 crore, operating in the Non-Ferrous Metals industry. The company’s Mojo Score stands at 72.0, with a current Mojo Grade of Buy, recently downgraded from Strong Buy on 23 Feb 2026. This slight moderation in rating reflects a cautious stance amid recent volatility but still endorses the stock as a favourable investment.

Implications of the Open Interest Surge

The 10.21% increase in open interest is significant in the context of NATIONALUM’s derivatives market, as it points to an expanding pool of participants taking fresh positions. This is often interpreted as a sign of conviction in the stock’s near-term direction. Given the concurrent price appreciation and volume expansion, it is reasonable to infer that the majority of these new positions are bullish in nature.

Moreover, the futures value of ₹50,864 lakhs and the options value exceeding ₹22,560 crore highlight the substantial liquidity and interest in NATIONALUM’s derivatives. Such liquidity facilitates efficient price discovery and allows institutional investors to express their market views effectively.

Investors should note that while the Mojo Grade has shifted from Strong Buy to Buy, the overall Mojo Score of 72.0 remains robust, indicating solid fundamentals and positive momentum. The downgrade may reflect a prudent reassessment of risk amid recent volatility but does not diminish the stock’s attractiveness.

Sectoral and Broader Market Context

The Aluminium & Aluminium Products sector has gained 2.53% on the day, supported by improving global demand and favourable commodity price trends. NATIONALUM’s outperformance relative to its sector and the Sensex suggests it is capturing a disproportionate share of investor interest, possibly due to company-specific developments or superior operational performance.

Liquidity metrics further support active trading in NATIONALUM, with the stock’s liquidity allowing for trade sizes of up to ₹4.13 crore based on 2% of the five-day average traded value. This level of liquidity is attractive for both retail and institutional investors seeking to enter or exit sizeable positions without significant market impact.

Outlook and Investor Takeaways

Given the current market positioning, rising open interest, and strong volume trends, NATIONALUM appears poised for further gains in the near term. The stock’s technical setup, supported by its position above key moving averages and a healthy dividend yield, adds to its appeal for both growth and income-oriented investors.

However, investors should remain mindful of the recent downgrade in Mojo Grade from Strong Buy to Buy, which suggests a need for cautious optimism. Monitoring open interest trends and volume patterns in the coming sessions will be crucial to confirm sustained bullish momentum.

In summary, the surge in derivatives open interest combined with solid price performance and rising delivery volumes indicates that market participants are increasingly confident in NATIONALUM’s prospects. This makes the stock a compelling candidate for inclusion in portfolios focused on the Non-Ferrous Metals sector.

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