Gandhar Oil Refinery Surges on Heavy Value Trading and Institutional Interest

Market Performance and Trading Activity

On 6 January, Gandhar Oil Refinery (symbol: GANDHAR) recorded a total traded volume of 1.22 crore shares, translating into a staggering traded value of ₹216.11 crores. This places the stock among the most actively traded equities by value on the day, underscoring heightened market interest. The stock opened at ₹170.40, representing a gap-up of 2.16% from the previous close of ₹166.80, and touched an intraday high of ₹178.95, marking a 6.71% rise within the session. The last traded price (LTP) stood at ₹177.13 as of 09:45 IST, reflecting a day gain of 5.44%.

Notably, Gandhar Oil Refinery outperformed the Oil Exploration and Refinery sector, which declined by 2.22% on the same day, and the Sensex, which slipped marginally by 0.19%. The stock’s one-day return of 5.64% contrasts sharply with the sector’s negative performance, highlighting its relative strength amid broader sector weakness.

Technical and Trend Analysis

The stock’s technical indicators reveal a bullish momentum. Gandhar Oil Refinery is trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained upward momentum across short, medium, and long-term horizons. The stock has also recorded consecutive gains over the past two days, delivering a cumulative return of 17.22% during this period. This positive trend suggests strong buying interest and potential for further upside, provided the broader market conditions remain favourable.

Institutional Interest and Delivery Volumes

One of the most striking features of the recent trading session is the surge in delivery volumes. On 5 January, the delivery volume soared to 51.79 lakh shares, an extraordinary increase of 3560.91% compared to the five-day average delivery volume. This spike indicates that a significant portion of traded shares was taken into investors’ demat accounts, reflecting genuine buying interest rather than speculative intraday trading. Such a surge in delivery volumes often points to institutional accumulation or strong retail conviction, both positive signals for the stock’s medium-term prospects.

Liquidity remains robust, with the stock’s traded value comfortably supporting trade sizes of up to ₹3.58 crores based on 2% of the five-day average traded value. This liquidity profile makes Gandhar Oil Refinery an attractive option for large investors seeking to enter or exit positions without significant price impact.

Fundamental and Rating Overview

Gandhar Oil Refinery is classified as a small-cap company with a market capitalisation of approximately ₹1,724.64 crores. Operating within the oil industry, the company has recently undergone a rating revision by MarketsMOJO. On 5 January 2026, its Mojo Grade was downgraded from Hold to Sell, with a Mojo Score of 48.0. This downgrade reflects a cautious stance based on the company’s fundamental and technical parameters, despite the recent price rally.

The Market Cap Grade stands at 3, indicating a mid-tier valuation relative to its peers. While the downgrade may temper enthusiasm among some investors, the strong trading volumes and price momentum suggest that market participants are currently optimistic about near-term prospects, possibly anticipating favourable operational or sectoral developments.

Sectoral Context and Comparative Performance

The oil sector has faced headwinds recently, with the Oil Exploration and Refinery segment declining by 2.22% on the day of analysis. This sectoral weakness contrasts with Gandhar Oil Refinery’s outperformance, which may be attributed to company-specific factors such as improved refining margins, operational efficiencies, or strategic initiatives that have yet to be fully reflected in analyst ratings.

Moreover, the stock’s ability to maintain gains above all major moving averages suggests resilience against sectoral volatility. Investors looking for exposure to the oil sector might consider Gandhar Oil Refinery’s recent price action and volume surge as a signal of selective strength within a challenging environment.

Investor Implications and Outlook

For investors, the recent surge in Gandhar Oil Refinery’s trading volumes and price gains presents a nuanced picture. On one hand, the strong institutional interest and rising delivery volumes indicate confidence in the stock’s fundamentals or near-term catalysts. On the other, the downgrade in Mojo Grade to Sell suggests caution, possibly due to valuation concerns or sector headwinds.

Given the stock’s small-cap status and the oil sector’s inherent volatility, investors should weigh the technical strength against fundamental risks. The stock’s liquidity profile supports sizeable trades, making it suitable for both institutional and high-net-worth investors seeking exposure to oil refining with a tactical approach.

Monitoring upcoming quarterly results, refining margin trends, and sectoral policy developments will be critical to assessing whether the current momentum can be sustained. Additionally, tracking changes in institutional holdings and delivery volumes will provide further insight into market sentiment.

Summary

Gandhar Oil Refinery (India) Ltd has emerged as a high-value trading stock with significant institutional interest and robust price momentum, outperforming its sector and the broader market on 6 January 2026. Despite a recent downgrade to a Sell rating by MarketsMOJO, the stock’s technical indicators and delivery volume surge suggest strong investor conviction. While sectoral challenges persist, Gandhar’s liquidity and trading activity make it a noteworthy candidate for investors seeking selective exposure within the oil refining space.

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