Manaksia Aluminium Company Ltd Hits Lower Circuit Amid Heavy Selling Pressure

Market Performance and Price Action

On 28 Jan 2026, Manaksia Aluminium Company Ltd (stock code 740084) opened with a gap down of 5%, reflecting immediate bearish sentiment among investors. The stock’s intraday high was ₹50.21, while it touched a low of ₹47.71, which also became the last traded price (LTP) as it hit the maximum permissible daily fall of 5%. This triggered the lower circuit breaker, halting further declines for the day.

The total traded volume stood at 5.63 lakh shares, with a turnover of ₹2.70 crore, indicating active participation but predominantly on the sell side. The weighted average price was closer to the day’s low, signalling that most trades occurred near the bottom end of the price band. This pattern is typical of panic selling, where sellers aggressively offload shares, pushing prices down to the circuit limit.

Extended Downtrend and Sector Comparison

Manaksia Aluminium has now recorded losses for six straight sessions, cumulatively falling by 26.33% over this period. This sustained downtrend contrasts sharply with the broader Non-Ferrous Metals sector, which declined by only 0.26% on the same day. The Sensex, in comparison, managed a modest gain of 0.52%, underscoring the stock’s relative weakness and sector underperformance by 5.29% on 28 Jan.

The stock’s moving averages reveal a mixed technical picture. While the price remains above the 20-day, 50-day, 100-day, and 200-day moving averages, it is trading below the 5-day moving average, indicating short-term bearish momentum despite longer-term support levels. This divergence suggests that while the stock has some underlying strength, immediate sentiment remains negative.

Investor Participation and Liquidity Concerns

Investor participation has notably diminished, with delivery volumes plummeting by 99.4% to just 1,740 shares on 27 Jan compared to the five-day average. This sharp drop in delivery volume indicates that fewer investors are holding shares for the long term, with many likely exiting positions amid the price decline. Despite this, the stock remains sufficiently liquid for small trade sizes, with 2% of the five-day average traded value supporting transactions up to ₹0.02 crore.

Fundamental and Market Capitalisation Overview

Manaksia Aluminium Company Ltd operates within the Non-Ferrous Metals industry, a sector known for its cyclical nature and sensitivity to global commodity prices. The company’s market capitalisation stands at approximately ₹330 crore, categorising it as a micro-cap stock. This smaller market cap often results in higher volatility and susceptibility to sharp price movements, as observed in recent sessions.

The company’s Mojo Score is 54.0, reflecting a Hold rating, an upgrade from a previous Sell rating as of 6 Jan 2026. This improvement suggests some stabilisation in fundamentals or valuation metrics, although the stock’s recent price action indicates that market sentiment remains cautious. The Market Cap Grade is 4, signalling moderate size within the micro-cap segment.

Technical and Sentiment Analysis

The stock’s fall to the lower circuit limit is a clear indication of panic selling and unfilled supply overwhelming demand. The maximum daily loss of 5% is the regulatory limit designed to prevent excessive volatility, and hitting this threshold often signals heightened investor anxiety. The persistent decline over six days, combined with falling delivery volumes, suggests that confidence in the stock has eroded significantly in the short term.

Despite this, the fact that the stock remains above its longer-term moving averages may provide some technical support, potentially limiting further downside if buying interest returns. However, the immediate outlook remains bearish until the stock can break the pattern of consecutive losses and restore investor confidence.

Investor Takeaways and Outlook

For investors, the recent price action in Manaksia Aluminium Company Ltd serves as a cautionary signal. The stock’s micro-cap status and sector volatility necessitate careful monitoring of both technical and fundamental indicators. While the Hold rating and Mojo Score improvement hint at some underlying stability, the ongoing selling pressure and circuit hit highlight the risks of short-term downside.

Investors should watch for signs of volume recovery and price consolidation above key moving averages before considering fresh positions. Additionally, comparing Manaksia Aluminium with other stocks in the Non-Ferrous Metals sector or exploring alternatives through analytical tools may help identify better risk-reward opportunities.

Given the stock’s recent underperformance relative to the sector and broader market, a cautious approach is advisable until clearer signs of reversal emerge.

Summary

Manaksia Aluminium Company Ltd’s plunge to the lower circuit limit on 28 Jan 2026 underscores the intense selling pressure gripping this micro-cap stock. With a 5% daily loss, six consecutive days of decline, and falling investor participation, the stock is currently in a bearish phase. Although technical support exists at longer-term moving averages and the Mojo rating has improved to Hold, the immediate outlook remains challenging. Investors should exercise prudence and consider alternative opportunities while monitoring developments closely.

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