Manaksia Steels Ltd Hits Lower Circuit Amid Heavy Selling Pressure

Intraday Price Movement and Volume Analysis

On the trading day, Manaksia Steels Ltd recorded an intraday high of ₹70.08 and a low of ₹65.7, the latter marking the lower circuit price band of 5%. The weighted average price indicated that the majority of the volume traded was closer to the day’s low, signalling sustained selling interest throughout the session. Total traded volume stood at 0.50401 lakh shares, with a turnover of ₹0.34 crore, underscoring moderate liquidity for a micro-cap stock.

Sectoral and Market Context

The ferrous metals sector, encompassing steel, sponge iron, and pig iron, also experienced a decline, falling by 2.58% on the same day. Manaksia Steels underperformed its sector peers by 2.25%, while the broader Sensex index declined by 0.92%. This relative underperformance highlights the stock’s vulnerability amid sector-wide weakness and investor risk aversion.

Technical Indicators and Moving Averages

Technically, Manaksia Steels’ last traded price (LTP) remains above its 50-day, 100-day, and 200-day moving averages, indicating a longer-term support base. However, the stock is trading below its 5-day and 20-day moving averages, reflecting short-term bearish momentum. The consecutive three-day fall has resulted in a cumulative loss of 6.49%, intensifying the negative sentiment.

Investor Participation and Delivery Volumes

Investor participation has notably declined, with delivery volumes on 7 January falling by 16.38% compared to the five-day average, registering at 29,460 shares. This drop in delivery volume suggests reduced conviction among buyers, further exacerbating the selling pressure. The stock’s liquidity, gauged at 2% of the five-day average traded value, remains sufficient for small trade sizes around ₹0.01 crore, but the lack of strong buying interest is evident.

Market Capitalisation and Mojo Ratings

Manaksia Steels Ltd is classified as a micro-cap company with a market capitalisation of approximately ₹450 crore. The company’s Mojo Score currently stands at 68.0, reflecting a Hold rating, a downgrade from its previous Buy grade as of 7 January 2026. The downgrade signals a cautious stance by analysts, likely influenced by the recent price weakness and sector headwinds.

Supply-Demand Imbalance and Panic Selling

The stock’s plunge to the lower circuit limit is indicative of an unfilled supply overhang, where sellers outnumber buyers significantly. Panic selling appears to have dominated trading sentiment, with investors rushing to exit positions amid fears of further declines. The inability of the stock to recover from the lower circuit level during the session suggests a lack of immediate buying support, which could prolong the downtrend if negative catalysts persist.

Comparative Performance and Outlook

Compared to the broader market and sector indices, Manaksia Steels’ sharper decline highlights its heightened sensitivity to market fluctuations and possibly company-specific concerns. While the ferrous metals sector is facing pressure from subdued demand and raw material cost volatility, Manaksia’s micro-cap status may amplify its price swings due to lower liquidity and investor interest.

Investor Considerations and Risk Factors

Investors should exercise caution given the recent downgrade and the stock’s vulnerability to further downside. The persistent selling pressure and lack of strong demand at lower levels raise concerns about near-term price stability. Additionally, the ferrous metals sector’s cyclical nature and exposure to global commodity price fluctuations add layers of risk for micro-cap stocks like Manaksia Steels.

Conclusion

Manaksia Steels Ltd’s breach of the lower circuit limit on 8 January 2026 underscores the intense selling pressure and investor anxiety surrounding the stock. With a maximum daily loss of 4.99%, the stock has underperformed both its sector and the broader market. The downgrade to a Hold rating and declining delivery volumes further highlight the cautious outlook. Market participants should monitor sector trends and company-specific developments closely before considering fresh exposure.

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