Manaksia Aluminium Company Ltd Hits Lower Circuit Amid Heavy Selling Pressure

Intraday Price Action and Market Context

On 4 Feb 2026, Manaksia Aluminium opened sharply lower at ₹35.10, down 4.98% from the previous close, and remained locked at this price throughout the trading session, triggering the lower circuit limit of ₹35.10. The stock’s high and low for the day were identical, indicating no upward price movement and a complete absence of buying interest to lift the price. Total traded volume was a modest 0.15304 lakh shares, translating to a turnover of ₹0.0537 crore, underscoring subdued liquidity despite the heavy selling.

The stock underperformed its sector, the Non-Ferrous Metals index, which gained 1.50% on the day, and the broader Sensex, which rose 0.23%. This divergence highlights the stock-specific pressures facing Manaksia Aluminium amid a generally stable market environment.

Extended Downtrend and Investor Sentiment

Manaksia Aluminium’s share price has been on a relentless downtrend, losing nearly half its value over the past 12 trading days. The cumulative decline of 45.9% during this period signals sustained panic selling and a lack of confidence among investors. The stock’s opening gap down of 4.98% on 4 Feb 2026 further emphasises the negative sentiment prevailing in the market.

Investor participation has also waned, with delivery volumes on 3 Feb falling by 52.63% compared to the five-day average, indicating that long-term holders are either exiting or refraining from fresh commitments. This decline in delivery volume suggests that the selling pressure is largely driven by short-term traders and panicked investors seeking to cut losses.

Technical Indicators and Moving Averages

Technically, the stock’s last traded price of ₹35.10 remains above its 50-day, 100-day, and 200-day moving averages, signalling some underlying long-term support. However, it is trading below its 5-day and 20-day moving averages, reflecting short-term weakness and bearish momentum. This technical divergence indicates that while the stock may have some foundational strength, immediate market dynamics are unfavourable.

Market Capitalisation and Quality Assessment

Manaksia Aluminium is classified as a micro-cap company with a market capitalisation of ₹230.02 crore. The company operates in the Non-Ferrous Metals industry, a sector known for its cyclical volatility and sensitivity to global commodity prices. The stock’s Mojo Score stands at 50.0, with a Mojo Grade of Hold as of 6 Jan 2026, upgraded from a previous Sell rating. This suggests a neutral stance by analysts, reflecting mixed fundamentals and uncertain near-term prospects.

Liquidity and Trading Dynamics

Despite the heavy selling pressure, Manaksia Aluminium remains sufficiently liquid for small trade sizes, with liquidity assessed at 2% of the five-day average traded value supporting trades up to ₹0.01 crore. However, the low turnover and volume on 4 Feb indicate that the stock is struggling to attract buyers at current levels, resulting in unfilled supply and the lower circuit lock.

The persistent inability to break above the lower circuit price suggests a significant imbalance between supply and demand, with sellers overwhelming buyers. This scenario often reflects panic selling, where investors rush to exit positions amid fears of further declines, exacerbating downward price momentum.

Sectoral and Broader Market Comparison

While Manaksia Aluminium has been under severe pressure, the Non-Ferrous Metals sector has shown resilience, gaining 1.50% on the same day. This divergence points to company-specific challenges rather than sector-wide issues. The broader market, represented by the Sensex, also posted modest gains, reinforcing the notion that the stock’s decline is driven by internal factors such as earnings concerns, operational issues, or investor sentiment.

Outlook and Investor Considerations

Given the stock’s extended downtrend, heavy selling pressure, and circuit lock, investors should exercise caution. The Hold rating and Mojo Score of 50.0 reflect a neutral outlook, suggesting that while the stock may have stabilisation potential, significant risks remain. The micro-cap status and relatively low market capitalisation add to the volatility and susceptibility to sharp price swings.

Investors should monitor upcoming corporate announcements, quarterly results, and sectoral developments closely. Any positive catalysts could help alleviate selling pressure and restore confidence. Conversely, continued negative news or weak fundamentals may prolong the downtrend and increase downside risk.

For traders, the current lower circuit lock indicates a lack of liquidity and heightened risk of further losses. It is advisable to avoid aggressive buying until clear signs of demand recovery emerge.

Summary

Manaksia Aluminium Company Ltd’s stock has succumbed to intense selling pressure, hitting its lower circuit price of ₹35.10 on 4 Feb 2026 with a maximum daily loss of 4.98%. The stock’s 12-day losing streak and 45.9% cumulative decline highlight persistent panic selling and unfilled supply. Despite some long-term technical support, short-term momentum remains weak, and liquidity is limited. The Hold rating and Mojo Grade upgrade from Sell reflect a cautious stance amid uncertain fundamentals. Investors should remain vigilant and consider alternative opportunities within the sector.

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