Manaksia Aluminium Company Ltd Hits Lower Circuit Amid Heavy Selling Pressure

Stock Performance and Market Context

On 1 Feb 2026, Manaksia Aluminium Company Ltd (stock code 740084) opened sharply lower by 4.99%, immediately touching its lower circuit price band of ₹40.92. The stock remained locked at this price throughout the trading session, indicating a complete absence of buying interest to absorb the heavy sell orders. The total traded volume was a mere 11,487 shares (0.11487 lakhs), with a turnover of ₹0.047 crore, reflecting subdued liquidity amid the panic selling.

This decline comes amid a broader sectoral weakness, with the Non-Ferrous Metals sector falling by 8.94% on the same day. However, Manaksia Aluminium outperformed its sector peers slightly by limiting its loss to 4.99%, compared to the sector’s sharper fall. The Sensex, in contrast, managed a modest gain of 0.19%, underscoring the stock’s sector-specific challenges rather than a market-wide selloff.

Extended Downtrend and Investor Sentiment

The stock has been under sustained pressure, recording losses for nine consecutive trading sessions. Over this period, Manaksia Aluminium’s share price has plummeted by 36.93%, signalling a significant erosion of investor confidence. The continuous fall has been exacerbated by an opening gap down of nearly 5% on the latest trading day, which set a negative tone for the session.

Investor participation has also waned considerably. Delivery volumes on 30 Jan 2026 dropped by 81.97% compared to the five-day average, with only 5,130 shares delivered, indicating a sharp decline in genuine buying interest. This drying up of demand has contributed to the unfilled supply and the stock’s inability to recover from its lower circuit level.

Technical Indicators and Moving Averages

From a technical standpoint, Manaksia Aluminium’s last traded price of ₹40.92 remains above its 50-day, 100-day, and 200-day moving averages, suggesting some underlying long-term support. However, the stock is trading below its 5-day and 20-day moving averages, reflecting short-term bearish momentum. This divergence highlights the current tussle between longer-term holders and short-term sellers, with the latter dominating the market sentiment.

Market Capitalisation and Mojo Ratings

Manaksia Aluminium is classified as a micro-cap company with a market capitalisation of ₹269 crore. The stock’s Mojo Score stands at 57.0, placing it in the ‘Hold’ category as of 6 Jan 2026, an upgrade from its previous ‘Sell’ rating. This rating change indicates some improvement in the company’s fundamentals or outlook, but the recent price action suggests that market participants remain cautious.

Sectoral Impact and Comparative Analysis

The Non-Ferrous Metals sector has been under pressure due to a combination of global commodity price volatility and domestic demand concerns. Manaksia Aluminium’s relative outperformance compared to the sector’s 8.94% decline suggests some resilience, but the stock’s ongoing downtrend and liquidity challenges remain key risks.

Compared to its sector peers, Manaksia Aluminium’s liquidity is moderate, with the stock being liquid enough to support trade sizes of approximately ₹0.03 crore based on 2% of the five-day average traded value. However, the sharp fall in delivery volumes signals that investors are increasingly reluctant to hold the stock amid the current market environment.

Unfilled Supply and Panic Selling Dynamics

The stock’s lock at the lower circuit price band is a clear indication of unfilled supply overwhelming demand. Panic selling has driven prices down to the maximum permissible daily loss of 5%, preventing any upward price movement. This scenario often reflects heightened uncertainty or negative sentiment triggered by company-specific or sector-wide developments.

Such circuit limits serve as a temporary buffer to prevent excessive volatility, but they also highlight the urgent need for fresh buying interest to stabilise the stock. Without intervention or positive catalysts, the risk of further declines remains elevated.

Outlook and Investor Considerations

Given the current market dynamics, investors should approach Manaksia Aluminium with caution. The stock’s recent upgrade to a ‘Hold’ rating by MarketsMOJO reflects some improvement in fundamentals, but the persistent downtrend and liquidity constraints pose significant near-term risks.

Potential investors should monitor key technical levels, sectoral trends, and any company-specific news that could alter sentiment. The stock’s ability to break free from the lower circuit lock and attract buying interest will be critical for any sustained recovery.

Meanwhile, existing shareholders may consider re-evaluating their positions in light of the stock’s nine-day losing streak and the broader sector weakness. Diversification and portfolio optimisation remain prudent strategies in such volatile conditions.

Summary

Manaksia Aluminium Company Ltd’s plunge to its lower circuit price of ₹40.92 on 1 Feb 2026 underscores the intense selling pressure and lack of buyer support in the non-ferrous metals sector. Despite a modest outperformance relative to its sector, the stock’s nine-day consecutive fall and sharp decline in delivery volumes highlight ongoing investor apprehension. While the recent Mojo rating upgrade to ‘Hold’ offers some optimism, the stock’s immediate outlook remains challenging amid unfilled supply and panic selling.

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