Apollo Micro Systems Ltd Hits Lower Circuit Amid Heavy Selling Pressure

Intraday Volatility and Price Movement

The stock opened on a positive note with a gap-up of 2.42%, reaching an intraday high of ₹272.05, up 4.33% from the previous close. However, the optimism was short-lived as the price reversed sharply, touching an intraday low of ₹247.75, down 4.99%. The weighted average price indicated that the majority of the volume traded closer to the lower price band, reflecting strong bearish momentum throughout the session.

Heavy Selling and Unfilled Supply

Trading volumes surged significantly, with a total traded volume of approximately 36.69 lakh shares and turnover crossing ₹96.63 crore. Notably, delivery volumes on 30 Jan rose by 120.8% compared to the five-day average, signalling rising investor participation but predominantly on the sell side. The stock’s liquidity remains adequate, supporting trade sizes up to ₹1.58 crore based on 2% of the five-day average traded value.

The sharp decline and hitting of the lower circuit suggest a scenario of panic selling, where unfilled supply overwhelmed demand, forcing the stock to close at the maximum permissible loss limit for the day. This abrupt reversal comes after four consecutive days of gains, indicating a potential trend reversal and heightened volatility in the near term.

Comparative Performance and Sector Context

On the day, Apollo Micro Systems underperformed its Aerospace & Defense sector peers, which declined by 1.29%, and the broader Sensex, which fell 1.31%. The stock’s one-day return was -3.76%, significantly worse than the sector and market benchmarks. This underperformance highlights the stock-specific pressures amid a generally weak market environment.

Technical Indicators and Moving Averages

From a technical perspective, the stock remains above its 5-day, 20-day, and 200-day moving averages, suggesting some underlying support in the short and long term. However, it trades below its 50-day and 100-day moving averages, indicating medium-term weakness. The recent price action and circuit hit may prompt cautiousness among traders and investors, as the stock faces resistance near the ₹270 level and support near ₹245.

Market Capitalisation and Mojo Ratings

Apollo Micro Systems Ltd is classified as a small-cap company with a market capitalisation of approximately ₹9,609 crore. The company’s Mojo Score currently stands at 62.0, with a Mojo Grade of Hold, downgraded from Buy on 27 Oct 2025. The downgrade reflects a reassessment of the stock’s risk-reward profile amid recent volatility and sector headwinds.

Investor Sentiment and Outlook

The sudden plunge and lower circuit hit have unsettled investors, triggering panic selling and a rush to exit positions. While the stock’s fundamentals remain intact within the Aerospace & Defense sector, the near-term outlook is clouded by profit booking and cautious sentiment. Investors should monitor upcoming corporate developments and sector trends closely before making fresh commitments.

Conclusion: Navigating Volatility in Apollo Micro Systems

Apollo Micro Systems Ltd’s lower circuit hit on 1 Feb 2026 underscores the volatility and selling pressure gripping the stock after a sustained rally. The maximum daily loss of 4.85% and unfilled supply indicate a sharp shift in market dynamics, with investors reacting to profit booking or broader sector concerns. While the stock remains technically supported on some moving averages, the downgrade to Hold and underperformance relative to sector peers suggest a cautious stance is warranted.

For investors, this episode highlights the importance of monitoring volume patterns, price bands, and delivery data to gauge market sentiment accurately. The Aerospace & Defense sector continues to offer long-term growth potential, but short-term fluctuations require disciplined risk management and selective stock picking.

Unlock special upgrade rates for a limited period. Start Saving Now →