Manaksia Aluminium Company Ltd Hits Lower Circuit Amid Heavy Selling Pressure

Intraday Price Action and Volume Dynamics

On 3 Feb, Manaksia Aluminium’s shares touched an intraday low of ₹36.94, which also became the closing price, triggering the maximum permissible daily fall of 5%. The stock’s price band is set at 5%, and the lower circuit was hit decisively as sellers overwhelmed buyers. The total traded volume stood at approximately 71,369 shares (0.71369 lakh), with a turnover of ₹0.27 crore, indicating moderate liquidity for a micro-cap stock with a market capitalisation of ₹242.08 crore.

Notably, the weighted average price for the day was closer to the low price, suggesting that most trades occurred near the bottom end of the day’s range. This pattern is typical of panic selling, where sellers aggressively offload shares at lower prices, and buyers remain hesitant to step in.

Sector and Market Comparison

Manaksia Aluminium’s performance on the day was markedly weaker than its sector and broader market benchmarks. The Non-Ferrous Metals sector gained 1.65%, while the Sensex advanced 2.56%. This divergence highlights the stock’s underperformance relative to peers and the overall market rally, underscoring company-specific concerns driving the sell-off.

Technical Indicators and Moving Averages

From a technical standpoint, the stock’s price remains above its 50-day, 100-day, and 200-day moving averages, which typically indicate longer-term support levels. However, it is trading below its 5-day and 20-day moving averages, signalling short-term bearish momentum. The sustained decline over 11 sessions and the breach of short-term averages suggest that the immediate trend remains negative, with sellers dominating the market.

Investor Participation and Delivery Volumes

Interestingly, delivery volumes have risen, with 36,480 shares delivered on 2 Feb, representing a 24.28% increase over the five-day average delivery volume. This rise in delivery volume amidst falling prices indicates that investors are increasingly holding onto shares rather than intraday trading, possibly expecting further downside or awaiting clarity on the company’s outlook.

Mojo Score and Rating Update

Manaksia Aluminium currently holds a Mojo Score of 50.0, placing it in the ‘Hold’ category. This represents an upgrade from its previous ‘Sell’ rating as of 6 Jan 2026. The market cap grade is 4, reflecting its micro-cap status. While the rating upgrade suggests some improvement in fundamentals or outlook, the ongoing price weakness and circuit hit indicate that investor confidence remains fragile.

Market Sentiment and Possible Causes of the Sell-Off

The persistent decline and eventual lower circuit hit can be attributed to a combination of factors. The Non-Ferrous Metals sector is sensitive to global commodity price fluctuations, currency volatility, and domestic demand conditions. Any adverse news related to aluminium prices, input costs, or company-specific operational challenges could have triggered the panic selling.

Moreover, the stock’s micro-cap status often results in higher volatility and susceptibility to sharp price movements on relatively low volumes. The unfilled supply of shares at lower price levels suggests that sellers are eager to exit positions, but buyers remain scarce, exacerbating the downward pressure.

Liquidity and Trading Considerations

Despite the heavy selling, the stock remains sufficiently liquid for small trade sizes, with liquidity based on 2% of the five-day average traded value supporting trades up to ₹0.03 crore. However, the limited turnover and relatively low market cap mean that large institutional participation is unlikely, and price movements may continue to be volatile and driven by retail sentiment.

Outlook and Investor Takeaways

Given the stock’s sharp decline of over 43% in just 11 trading sessions and the recent lower circuit hit, investors should approach Manaksia Aluminium with caution. The current technical setup and market sentiment suggest continued volatility in the near term. While the Mojo rating upgrade to ‘Hold’ indicates some stabilisation, the lack of buying interest and persistent selling pressure highlight ongoing risks.

Investors may wish to monitor key support levels around ₹36.94 closely, as a breach could trigger further declines. Conversely, a sustained recovery above short-term moving averages might signal a potential turnaround. Until then, the stock remains a high-risk proposition within the Non-Ferrous Metals sector.

For portfolio managers and traders, it is prudent to consider liquidity constraints and the stock’s micro-cap nature before initiating or increasing exposure. Diversification and comparison with better-rated peers could help mitigate downside risks.

Summary

Manaksia Aluminium Company Ltd’s fall to the lower circuit on 3 Feb 2026 underscores the intense selling pressure and investor anxiety surrounding the stock. Despite a recent Mojo rating upgrade, the stock’s 11-day losing streak and underperformance relative to sector and market benchmarks highlight ongoing challenges. Rising delivery volumes amid falling prices point to cautious investor behaviour, while technical indicators suggest short-term bearish momentum. Market participants should remain vigilant and consider alternative investment opportunities within the sector and broader market.

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