Manaksia Steels Ltd Falls 8.63%: 3 Key Factors Behind the Sharp Weekly Decline

5 January: Surge to Upper Circuit on Strong Buying Interest

Manaksia Steels Ltd began the week on a bullish note, rallying 2.59% to close at Rs.70.04, outperforming the Sensex which declined 0.18% to 37,730.95. The stock hit its upper circuit limit of 5%, closing near Rs.71.29, driven by robust buying momentum and heightened investor interest. Intraday, the stock touched a high of Rs.72.28, reflecting strong demand.

Trading volumes were moderate at 53,278 shares, with delivery volumes surging 45.21% compared to the five-day average, indicating genuine accumulation rather than speculative trading. The stock’s technical position was strong, trading above all key moving averages, and its Mojo Grade was upgraded to ‘Buy’ on 2 January 2026, signalling improved fundamentals and technical strength.

This rally was supported by optimism in the ferrous metals sector, which gained 0.66% that day, contrasting with the broader market’s slight decline. The regulatory freeze triggered by the upper circuit hit underscored unfilled demand and investor conviction.

6 January: Profit Booking Leads to Moderate Decline

On 6 January, the stock corrected by 1.86% to Rs.68.74, underperforming the Sensex which fell 0.19%. The decline followed the previous day’s sharp rally, with investors booking profits amid mixed market sentiment. Volume increased to 1,28,600 shares, reflecting active trading, but delivery volumes were not highlighted, suggesting less conviction in holding positions.

Despite the dip, the stock remained above longer-term moving averages, maintaining some technical support. The ferrous metals sector also declined, contributing to the cautious mood.

7 January: Slight Recovery Amid Mixed Sentiment

The stock edged up 0.35% to Rs.68.98 on 7 January, marginally outperforming the Sensex which rose 0.03%. Trading volumes surged to 3,06,300 shares, indicating increased activity. However, delivery volumes declined by 16.38%, signalling reduced conviction among investors to hold the stock long term.

This day’s modest gain was insufficient to reverse the emerging short-term weakness, as the stock remained below its 5-day and 20-day moving averages, suggesting waning momentum despite longer-term support.

8 January: Sharp Decline to Lower Circuit Amid Heavy Selling

Manaksia Steels Ltd faced intense selling pressure on 8 January, plunging 4.99% to close at Rs.65.54, triggering the lower circuit limit. This decline was more severe than the ferrous metals sector’s 2.58% fall and the Sensex’s 0.89% drop, highlighting stock-specific weakness.

Trading volumes were robust at 4,62,700 shares, with the weighted average price near the day’s low, indicating panic selling. Delivery volumes on 7 January were down, reflecting investor hesitation to hold. The stock’s technical position deteriorated, falling below short-term moving averages, signalling a loss of momentum.

This sharp fall followed the earlier rally and profit booking, suggesting a rapid shift in sentiment amid sectoral headwinds and possible concerns over fundamentals.

9 January: Continued Selling Pressure Locks Stock at Lower Circuit

The downward trend intensified on 9 January as Manaksia Steels Ltd plunged another 4.99% to Rs.62.38, again hitting the lower circuit limit. This marked the fourth consecutive session of decline, with a cumulative loss of 11.16% over this period. The stock underperformed both the ferrous metals sector, which declined marginally by 0.06%, and the Sensex, which fell 0.19%.

Trading volumes remained significant at 1,75,810 shares, with delivery volumes rising 8.87% on 8 January, indicating increased selling for settlement rather than intraday trading. The weighted average price was close to the day’s low, confirming sustained selling pressure and lack of buyer interest.

Technically, the stock is now below its short-term moving averages, signalling bearish momentum, though it remains above longer-term averages. The Mojo Grade was downgraded to ‘Hold’ on 7 January 2026, reflecting a more cautious outlook amid sector challenges and price weakness.

Key Takeaways

Positive Signals: The initial surge to the upper circuit on 5 January demonstrated strong investor interest and technical strength, supported by increased delivery volumes and an upgraded Mojo Grade to ‘Buy’. The stock’s position above long-term moving averages throughout the week indicates underlying support despite short-term volatility.

Cautionary Signals: The subsequent sharp declines and two lower circuit hits on 8 and 9 January reflect intense selling pressure and panic among investors. The downgrade to ‘Hold’ and falling below short-term moving averages signal weakening momentum. Elevated delivery volumes during the sell-off suggest genuine exit by shareholders rather than intraday trading, raising concerns about near-term stability.

The stock’s underperformance relative to both the ferrous metals sector and the Sensex highlights company-specific challenges amid broader sectoral headwinds. The micro-cap status and regulatory circuit halts underscore the potential for amplified volatility.

Conclusion

Manaksia Steels Ltd’s week was characterised by a dramatic reversal from a strong rally to sustained selling pressure, resulting in an 8.63% weekly decline that outpaced the Sensex’s 2.62% fall. The initial optimism driven by robust buying and technical strength gave way to caution as the stock hit lower circuits twice, reflecting investor concerns and sectoral challenges.

While the stock retains some longer-term technical support, the short-term outlook remains uncertain amid persistent volatility and a recent downgrade in rating. Market participants should monitor upcoming corporate developments and sector trends closely to gauge whether the stock can stabilise or if further downside risks persist.

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