Manaksia Aluminium Company Ltd Plunges to Lower Circuit Amid Heavy Selling Pressure

Intraday Performance and Market Context

On 6 Feb 2026, Manaksia Aluminium Company Ltd opened sharply lower, down approximately 3% from the previous close, signalling immediate bearish sentiment among investors. The stock’s intraday low of ₹31.69 represented the maximum permissible daily decline of 5%, triggering the lower circuit mechanism designed to curb excessive volatility. This decline outpaced the broader non-ferrous metals sector, which fell by 2.19%, and the Sensex, which was down a modest 0.41% on the day.

The weighted average price for the day was skewed towards the lower end of the band, indicating that the majority of traded volumes clustered near the day’s low. Total traded volume stood at 2.45 lakh shares, with a turnover of ₹0.78 crore, reflecting active but predominantly one-sided selling interest.

Prolonged Downtrend and Investor Sentiment

Manaksia Aluminium’s share price has been on a steep decline for 14 consecutive trading sessions, cumulatively shedding 51.16% of its value during this period. This sustained fall highlights persistent negative sentiment, likely driven by a combination of sectoral headwinds and company-specific concerns. The stock’s performance today underperformed its sector peers by 3.02%, underscoring its relative weakness within the non-ferrous metals space.

Investor participation has notably increased, with delivery volumes on 5 Feb surging by 651.99% compared to the five-day average, signalling heightened interest but predominantly from sellers exiting positions. Despite this, the stock remains liquid enough to accommodate trades of up to ₹0.02 crore without significant price disruption, based on 2% of the five-day average traded value.

Technical Indicators and Moving Averages

From a technical standpoint, Manaksia Aluminium’s current price of ₹31.69 sits below its short- and medium-term moving averages, including the 5-day, 20-day, and 50-day averages, indicating bearish momentum. However, it remains above the longer-term 100-day and 200-day moving averages, suggesting that while short-term sentiment is weak, the stock has not yet breached critical long-term support levels.

This technical setup may imply that the stock is in a phase of consolidation or correction within a broader downtrend, with investors closely watching for signs of a reversal or further deterioration.

Market Capitalisation and Mojo Rating

Manaksia Aluminium Company Ltd is classified as a micro-cap stock with a market capitalisation of ₹207.68 crore. The company operates within the non-ferrous metals industry, a sector known for its cyclical volatility and sensitivity to global commodity prices and domestic demand fluctuations.

MarketsMOJO currently assigns the stock a Mojo Score of 50.0, placing it in the 'Hold' category. This rating reflects a recent upgrade from a 'Sell' grade on 6 Jan 2026, signalling a cautious but slightly more optimistic outlook. The market cap grade stands at 4, indicating moderate size and liquidity constraints typical of micro-cap stocks.

Supply-Demand Dynamics and Panic Selling

The sharp decline and circuit hit on 6 Feb 2026 were driven by heavy selling pressure, with a notable imbalance between supply and demand. The unfilled supply of shares at lower price levels suggests that sellers dominated the market, overwhelming buyers and pushing the stock to its daily permissible loss limit.

This scenario often reflects panic selling, where investors rush to exit positions amid negative news flow or deteriorating fundamentals, exacerbating price declines. The lack of sufficient buying interest to absorb the selling volume indicates fragile investor confidence and heightened risk aversion towards the stock.

Sectoral and Broader Market Implications

The non-ferrous metals sector has faced headwinds recently, including fluctuating raw material costs, regulatory uncertainties, and subdued demand from key end-user industries. Manaksia Aluminium’s underperformance relative to its sector peers highlights company-specific challenges that may include operational inefficiencies, margin pressures, or concerns over future earnings growth.

Meanwhile, the broader market’s modest decline suggests that the stock’s sharp fall is not merely a reflection of general market weakness but rather a targeted sell-off driven by internal factors.

Investor Takeaways and Outlook

For investors, the current scenario presents a cautionary tale. The stock’s persistent downtrend, culminating in a lower circuit hit, signals significant near-term risks. The lack of buying support and the surge in delivery volumes suggest that many shareholders are opting to exit, potentially anticipating further declines.

However, the recent upgrade in Mojo Grade from 'Sell' to 'Hold' indicates that some analysts see potential stabilisation or value emerging at current levels. Investors should closely monitor upcoming quarterly results, sector developments, and any corporate announcements that could influence sentiment.

Given the stock’s micro-cap status and liquidity profile, price volatility is likely to remain elevated. Prudent investors may consider waiting for clear signs of trend reversal or improved fundamentals before increasing exposure.

Conclusion

Manaksia Aluminium Company Ltd’s plunge to the lower circuit on 6 Feb 2026 underscores the intense selling pressure and fragile investor confidence surrounding this micro-cap non-ferrous metals stock. While the broader sector and market have shown relative resilience, company-specific challenges have driven a sharp correction exceeding 50% over the past two weeks.

With a Mojo Score of 50.0 and a 'Hold' rating, the stock remains under close scrutiny. Investors should weigh the risks of continued downside against any emerging turnaround signals, maintaining a disciplined approach amid ongoing volatility.

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