Impex Ferro Tech Ltd Hits Lower Circuit Amid Heavy Selling Pressure

Stock Performance and Circuit Trigger

On 24 Feb 2026, Impex Ferro Tech Ltd’s share price closed at ₹1.75, hitting the lower circuit limit after a sharp intraday fall. The stock recorded a maximum daily loss of 5.2%, the maximum permissible decline under the current price band of ₹5.00. Despite the circuit filter, the stock witnessed heavy unfilled supply, indicating persistent panic selling and a lack of buying interest at lower levels.

The stock’s intraday range was confined between ₹1.65 and ₹1.75, with the closing price at the upper end of this band due to the circuit limit. Total traded volume was modest at 0.00665 lakh shares, translating to a turnover of ₹0.00011438 crore, underscoring limited liquidity but significant selling pressure relative to the stock’s micro-cap status.

Sector and Market Context

Impex Ferro Tech Ltd operates within the ferrous metals industry, a sector currently under strain due to subdued demand and volatile raw material prices. The stock’s 1-day return of 1.16% marginally outperformed the sector’s decline of 1.24% and the Sensex’s fall of 0.89%, but this relative outperformance is overshadowed by the stock’s technical distress and fundamental weaknesses.

Notably, the company’s market capitalisation stands at a modest ₹15.00 crore, categorising it as a micro-cap stock with inherently higher volatility and susceptibility to market swings. The stock is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a sustained downtrend and weak investor confidence.

Investor Participation and Delivery Volumes

Investor participation has shown signs of rising anxiety, with delivery volume on 23 Feb 2026 increasing by 48.27% to 7,090 shares compared to the 5-day average. This spike in delivery volume suggests that more investors are offloading their holdings, contributing to the downward momentum. However, the overall liquidity remains limited, with the stock’s traded value equating to just 2% of its 5-day average, restricting the ability of larger trades to absorb selling pressure.

Mojo Score and Analyst Ratings

MarketsMOJO assigns Impex Ferro Tech Ltd a Mojo Score of 12.0, categorising it as a Strong Sell. This rating was upgraded from a previous Sell grade on 23 Sep 2024, reflecting a further deterioration in the company’s financial health and market outlook. The stock’s Market Cap Grade is 4, indicating its micro-cap status and associated risks.

The Strong Sell rating is driven by weak earnings prospects, poor liquidity, and the stock’s inability to sustain any meaningful recovery despite sector fluctuations. Analysts caution investors to avoid fresh exposure until there is a clear turnaround in fundamentals and technical indicators.

Technical Analysis and Moving Averages

Technically, Impex Ferro Tech Ltd remains in a bearish phase. The stock is trading below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a lack of upward momentum. This persistent weakness suggests that short-term rallies are unlikely to sustain without significant positive triggers.

Moreover, the stock’s price band of ₹5.00 and the triggered lower circuit limit indicate that the market is imposing strict controls to prevent excessive volatility. However, the unfilled supply and continued panic selling highlight the underlying negative sentiment among investors.

Outlook and Investor Considerations

Given the current market dynamics and the company’s micro-cap status, investors should exercise caution. The heavy selling pressure and circuit limit hit reflect deep-seated concerns about Impex Ferro Tech Ltd’s near-term prospects. Until the company demonstrates improved operational performance or sector conditions improve markedly, the stock is likely to remain under pressure.

Investors are advised to monitor delivery volumes and price action closely, as any sustained increase in buying interest could signal a potential bottom. However, the prevailing mood remains bearish, and the stock’s liquidity constraints may exacerbate price swings.

Summary

Impex Ferro Tech Ltd’s stock hitting the lower circuit limit on 24 Feb 2026 underscores the severe selling pressure and negative sentiment engulfing this micro-cap ferrous metals company. Despite a slight outperformance relative to the sector and Sensex, the stock’s technical and fundamental indicators remain weak, with a Strong Sell rating from MarketsMOJO.

Investor caution is warranted given the stock’s limited liquidity, persistent downtrend, and unfilled supply at lower price levels. Until there is a meaningful improvement in the company’s financials or sector outlook, Impex Ferro Tech Ltd is likely to remain a high-risk proposition for investors.

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