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

Intraday Price Action and Volume Dynamics

On 16 Feb 2026, Manaksia Aluminium Company Ltd (stock code 740084) opened sharply lower by 3.53%, signalling immediate bearish sentiment. The stock’s intraday high was ₹29.75, while it plunged to an intraday low and closing price of ₹28.56, triggering the lower circuit limit of 5% on the day. This marked the third consecutive session of losses, cumulatively eroding 14.23% of the stock’s value over this period.

Trading volumes reflected subdued investor interest, with total traded volume at 61,750 shares (0.6175 lakh), translating to a turnover of ₹0.1777 crore. Notably, the weighted average price indicated that the bulk of trading activity clustered near the day’s low, underscoring persistent selling pressure and a lack of meaningful buying support to arrest the decline.

Technical Indicators and Moving Averages

Technically, Manaksia Aluminium is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a bearish trend across short, medium, and long-term horizons. This technical weakness has likely contributed to the negative sentiment, as investors remain cautious amid the stock’s inability to reclaim critical resistance levels.

The stock’s Mojo Score stands at 58.0, with a Mojo Grade of Hold as of 6 Jan 2026, upgraded from a previous Sell rating. Despite this upgrade, the current price action suggests that the market has yet to fully embrace the positive outlook, possibly due to lingering concerns over fundamentals or sectoral headwinds.

Sector and Market Comparison

Manaksia Aluminium’s 1-day return of -4.99% significantly underperformed the Non-Ferrous Metals sector, which declined by 1.18%, and the Sensex, which marginally gained 0.06% on the same day. This relative underperformance highlights the stock-specific challenges faced by Manaksia Aluminium amid broader market stability.

The company’s market capitalisation remains modest at ₹187.17 crore, categorising it as a micro-cap stock. This smaller market cap often results in higher volatility and susceptibility to sharp price swings, especially when faced with concentrated selling pressure.

Investor Participation and Delivery Volumes

Investor participation has notably diminished, with delivery volumes on 13 Feb 2026 falling by 93.84% compared to the 5-day average delivery volume. This sharp decline in delivery volumes suggests that long-term investors are either exiting positions or refraining from fresh commitments, exacerbating the stock’s downward momentum.

Liquidity remains adequate for small trade sizes, with the stock’s traded value meeting 2% of its 5-day average traded value, allowing for trades up to ₹0.02 crore without significant market impact. However, the limited liquidity typical of micro-cap stocks can amplify price movements when selling pressure intensifies.

Market Sentiment and Panic Selling

The sharp fall and circuit hit reflect panic selling among investors, likely triggered by a combination of disappointing sectoral trends and company-specific concerns. The Non-Ferrous Metals sector has faced headwinds from fluctuating commodity prices and global demand uncertainties, which may have weighed on Manaksia Aluminium’s outlook.

Moreover, the stock’s inability to attract buyers at lower levels has resulted in unfilled supply, pushing prices down to the maximum permissible limit. This scenario often signals heightened risk aversion and a lack of confidence in near-term recovery prospects.

Fundamental Overview and Outlook

Manaksia Aluminium operates within the Non-Ferrous Metals industry, a sector sensitive to global economic cycles and raw material price volatility. The company’s micro-cap status and relatively low market capitalisation of ₹187.17 crore limit its ability to absorb shocks compared to larger peers.

While the recent Mojo Grade upgrade from Sell to Hold indicates some improvement in underlying fundamentals or valuation metrics, the current market behaviour suggests that investors remain cautious. The stock’s continued trading below all major moving averages and persistent volume decline highlight the need for a clearer catalyst to reverse the downtrend.

Investor Takeaway

Investors should approach Manaksia Aluminium with caution given the recent price weakness and technical deterioration. The stock’s micro-cap nature and limited liquidity can lead to amplified volatility, especially during periods of sectoral uncertainty.

While the Mojo Grade upgrade to Hold suggests some fundamental stabilisation, the persistent downtrend and circuit hit indicate that a turnaround is not imminent. Investors may prefer to monitor the stock for signs of sustained volume recovery and price consolidation above key moving averages before considering fresh exposure.

Comparing Manaksia Aluminium with other higher-rated stocks in the Non-Ferrous Metals sector could provide better risk-adjusted opportunities, particularly among larger-cap companies with stronger financial profiles and more stable trading patterns.

Conclusion

Manaksia Aluminium Company Ltd’s lower circuit hit on 16 Feb 2026 underscores the intense selling pressure and investor apprehension surrounding this micro-cap stock. The maximum daily loss of 4.99%, combined with declining volumes and technical weakness, paints a challenging near-term outlook. While the recent Mojo Grade upgrade to Hold offers a glimmer of hope, the stock remains vulnerable until it can demonstrate improved price stability and renewed investor confidence.

Market participants should weigh the risks carefully and consider alternative investment options within the sector that offer stronger fundamentals and more favourable technical setups.

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