Exceptional Volume and Price Movement
On the trading day, Gandhar Oil Refinery recorded a staggering total traded volume of 3.14 crore shares, translating to a traded value of approximately ₹540.67 crores. This volume spike is significant for a small-cap company with a market capitalisation of ₹1,519 crores. The stock opened at ₹153.80 and surged to an intraday high of ₹177.79, marking a substantial 17.15% rise from the previous close of ₹151.76. The last traded price (LTP) stood at ₹168.67 as of 14:19 IST, reflecting a day change of 9.64% and a one-day return of 10.70%, vastly outperforming the oil sector’s decline of 0.89% and the Sensex’s marginal fall of 0.35%.
Wide Trading Range and Volume Distribution
The stock traded within a wide price range of ₹25.28 during the session, indicating heightened volatility and active participation from traders. Interestingly, the weighted average price suggests that a larger volume of shares exchanged hands closer to the lower end of the price spectrum, hinting at accumulation by investors at relatively attractive levels. This pattern often precedes sustained upward momentum as buying interest consolidates.
Technical Indicators and Moving Averages
From a technical standpoint, Gandhar Oil Refinery is trading above its key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a robust bullish trend. The stock’s ability to maintain levels above these averages after a volume-driven rally reinforces the strength of the current uptrend. This technical positioning is crucial for investors seeking confirmation of trend reversals and sustainable price appreciation.
Investor Participation and Liquidity
Despite the surge in volume, delivery volumes have shown a decline, with the delivery volume on 2 January falling by 47.44% compared to the five-day average. This suggests that while trading activity is high, a significant portion of the volume may be driven by intraday traders rather than long-term holders. Nevertheless, the stock remains sufficiently liquid, with the average traded value supporting trade sizes of up to ₹0.09 crore without impacting market prices significantly.
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Mojo Score Upgrade and Market Sentiment
Gandhar Oil Refinery’s Mojo Score currently stands at 54.0, reflecting a Hold rating, an improvement from its previous Sell grade as of 31 December 2025. This upgrade indicates a shift in market sentiment and analyst outlook, likely influenced by the recent price and volume action. The company’s market cap grade is 3, categorising it as a small-cap stock with moderate liquidity and growth potential.
Sector Context and Comparative Performance
The oil sector has experienced mixed performance recently, with many stocks facing pressure due to fluctuating crude prices and global economic uncertainties. Against this backdrop, Gandhar Oil Refinery’s outperformance by over 12% relative to its sector peers is noteworthy. The stock’s ability to buck the sector trend and deliver strong returns on high volume suggests renewed investor confidence and potential fundamental triggers supporting the rally.
Accumulation and Distribution Signals
Analysing the volume-price relationship, the weighted average price being closer to the day’s low, combined with the wide trading range, points towards accumulation by institutional or informed investors. This is further supported by the stock’s sustained trading above key moving averages. However, the decline in delivery volumes tempers the enthusiasm slightly, indicating that some of the volume surge may be speculative or short-term in nature. Investors should monitor subsequent sessions for confirmation of sustained accumulation or potential distribution.
Outlook and Investor Considerations
Given the recent trend reversal and volume surge, Gandhar Oil Refinery presents an intriguing opportunity for investors seeking exposure to the oil sector’s small-cap segment. The stock’s technical strength, combined with improved analyst ratings, supports a cautiously optimistic outlook. However, the mixed signals on investor participation warrant a measured approach, with attention to upcoming earnings, sector developments, and broader market conditions.
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Conclusion
Gandhar Oil Refinery’s exceptional trading volume and price surge on 5 January 2026 mark a significant development for the stock and its investors. The combination of technical strength, improved Mojo rating, and sector outperformance suggests a potential turning point. While the decline in delivery volumes advises caution, the overall market activity indicates renewed interest and possible accumulation. Investors should continue to monitor volume trends, price action, and fundamental updates to gauge the sustainability of this rally.
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