Intense Put Option Trading Highlights Bearish Outlook
On 14 August 2026, National Aluminium recorded substantial put option volumes with three key strike prices—₹360, ₹370, and ₹380—dominating activity for the expiry dated 25 August 2026. The highest number of contracts traded was at the ₹380 strike, with 4,870 contracts exchanged, generating a turnover of ₹920.43 lakhs. This was closely followed by the ₹370 strike with 4,710 contracts and ₹515.75 lakhs turnover, and the ₹360 strike with 3,142 contracts and ₹185.57 lakhs turnover.
Open interest figures further underscore the sustained bearish sentiment, with 1,302 contracts open at ₹380, 1,457 at ₹370, and 1,756 at ₹360. These levels indicate that traders are positioning for potential downside or hedging existing long exposures as the stock price hovers around ₹382.05.
Price Performance and Sector Context
National Aluminium’s share price has underperformed its sector peers, falling by 5.05% on the day and underperforming the Aluminium & Aluminium Products sector by 2.88%. The stock has declined for two consecutive sessions, losing 9.76% over this period. It opened sharply lower by 5.29% and touched an intraday low of ₹378.8, reflecting heightened selling pressure.
Despite this recent weakness, the stock remains above its 20-day, 50-day, and 200-day moving averages, though it trades below the 5-day and 100-day averages. This mixed technical picture suggests short-term bearish momentum amid longer-term support levels.
Investor Participation and Liquidity Considerations
Investor participation has waned slightly, with delivery volumes on 13 August falling by 8.85% to 42.89 lakh shares compared to the five-day average. However, liquidity remains adequate for sizeable trades, with the stock’s average traded value supporting transactions up to ₹10.59 crore without significant market impact.
National Aluminium’s dividend yield stands at a healthy 3.23%, which may provide some cushion for long-term investors despite near-term volatility.
Mojo Score Upgrade Reflects Positive Medium-Term Outlook
Notably, MarketsMOJO has upgraded National Aluminium’s Mojo Grade from Hold to Buy as of 3 June 2026, assigning a Mojo Score of 72.0. This mid-cap stock’s improved rating reflects favourable fundamental metrics and quality assessments, even as short-term option market activity signals caution.
Implications for Investors and Traders
The heavy put option activity at strike prices clustered just below and near the current market price suggests that market participants are either hedging against further downside or speculating on a correction. The concentration of open interest at ₹360 and ₹370 strikes indicates that these levels are viewed as critical support zones by option traders.
For investors, this heightened put activity may warrant closer monitoring of price action and sector developments, particularly given the stock’s recent underperformance relative to the Aluminium sector and broader Sensex, which declined by only 0.25% on the same day.
Traders might consider the potential for increased volatility as expiry approaches, with the possibility of price swings influenced by option expiry dynamics and investor positioning adjustments.
Sectoral and Market Outlook
The non-ferrous metals sector, including aluminium producers, has faced headwinds from fluctuating commodity prices and global demand uncertainties. National Aluminium’s recent price weakness and option market behaviour mirror these broader challenges. However, the company’s mid-cap status and solid dividend yield may continue to attract investors seeking value in the sector.
Overall, the interplay between technical indicators, option market signals, and fundamental upgrades creates a nuanced outlook for National Aluminium. While the short-term sentiment appears cautious, medium-term prospects remain supported by improved mojo ratings and dividend attractiveness.
Conclusion
National Aluminium Company Ltd’s pronounced put option activity ahead of the 25 August 2026 expiry highlights a market environment marked by increased bearish hedging and speculative positioning. The stock’s recent price declines and sector underperformance have prompted investors to seek downside protection, as evidenced by the surge in put contracts at strike prices near the current market level.
Investors should weigh these signals alongside the company’s upgraded mojo grade and dividend yield, balancing short-term caution with longer-term fundamental strength. As expiry approaches, monitoring option open interest and price movements will be crucial for anticipating potential volatility and directional shifts in this mid-cap non-ferrous metals stock.
