Manaksia Steels Ltd Plunges to Lower Circuit Amid Heavy Selling Pressure

Intraday Price Movement and Trading Activity

On 9 Jan 2026, Manaksia Steels Ltd’s equity shares traded within a price band of Rs 65.70 to Rs 62.42, closing at the day’s low of Rs 62.42. This represented a decline of Rs 3.28 or 4.99% from the previous close, triggering the lower circuit filter and halting further trading declines. The weighted average price for the day was skewed towards the lower end, indicating that the majority of volumes were executed near the bottom price level.

Trading volumes were relatively modest, with a total traded volume of 0.17581 lakh shares and a turnover of approximately ₹0.11 crore. Despite the limited volume, the stock’s liquidity remains adequate for small trade sizes, supported by a delivery volume of 39,930 shares on 8 Jan 2026, which was 8.87% higher than the five-day average delivery volume. This suggests rising investor participation, albeit dominated by sellers.

Performance Relative to Sector and Market Benchmarks

Manaksia Steels Ltd’s 1-day return of -4.99% starkly contrasted with the ferrous metals sector’s marginal decline of -0.06% and the Sensex’s broader fall of -0.19%. This underperformance by 4.22 percentage points highlights the stock’s vulnerability amid sectoral and market headwinds. The stock has also been on a downward trajectory for four consecutive sessions, cumulatively losing 11.16% over this period, signalling sustained bearish sentiment.

Technical Indicators and Moving Averages

From a technical standpoint, the stock’s price remains above its 100-day and 200-day moving averages, which typically indicate longer-term support levels. However, it is trading below its 5-day, 20-day, and 50-day moving averages, reflecting short- to medium-term weakness and a bearish trend. This divergence suggests that while the stock may have some underlying support, immediate market sentiment is negative, with sellers dominating near-term trading.

Investor Sentiment and Market Cap Considerations

Manaksia Steels Ltd is classified as a micro-cap stock with a market capitalisation of approximately ₹430 crore. The company operates within the ferrous metals industry, a sector that has faced volatility due to fluctuating raw material costs and global demand uncertainties. The stock’s Mojo Score currently stands at 68.0, with a Mojo Grade of Hold, downgraded from a Buy rating on 7 Jan 2026. This downgrade reflects a reassessment of the company’s near-term prospects amid deteriorating price momentum and increased selling pressure.

The market cap grade of 4 indicates a relatively small size compared to larger peers, which can contribute to higher volatility and susceptibility to sharp price swings. The recent price action underscores this vulnerability, as panic selling has pushed the stock to its circuit limit, preventing further declines but signalling significant investor concern.

Supply-Demand Imbalance and Unfilled Sell Orders

The lower circuit hit is indicative of an unfilled supply of shares, where sell orders overwhelmed buy interest, forcing the exchange to impose a trading halt at the maximum permissible loss limit of 5%. Such a scenario often arises from panic selling triggered by negative news, disappointing earnings outlooks, or broader sectoral weakness. While the exact catalyst for the sell-off remains unclear, the persistent four-day decline and volume patterns suggest a sustained exit by investors seeking to limit losses.

Despite the circuit filter, the underlying pressure remains, as reflected in the stock’s inability to recover intraday. The imbalance between supply and demand highlights the challenges faced by Manaksia Steels Ltd in regaining investor confidence in the short term.

Outlook and Investor Considerations

Given the recent price action and downgrade in Mojo Grade, investors should approach Manaksia Steels Ltd with caution. The stock’s current technical weakness and heavy selling pressure suggest that near-term volatility may persist. However, the presence of longer-term moving average support levels could provide a floor if market sentiment stabilises.

Investors are advised to monitor sector trends closely, particularly raw material price movements and demand outlooks in the ferrous metals industry. Additionally, tracking delivery volumes and price action in the coming sessions will be crucial to gauge whether the selling pressure abates or intensifies.

For those holding positions, risk management strategies such as stop-loss orders or partial profit booking may be prudent. Prospective investors should await clearer signs of price recovery and improved fundamentals before committing fresh capital.

Summary

Manaksia Steels Ltd’s plunge to the lower circuit on 9 Jan 2026 reflects a significant bout of panic selling and unfilled supply in the market. The stock’s underperformance relative to its sector and the Sensex, combined with a downgrade in Mojo Grade to Hold, signals caution. While longer-term technical supports exist, the immediate outlook remains challenging amid persistent bearish sentiment and liquidity-driven volatility typical of micro-cap stocks in the ferrous metals space.

Investors should remain vigilant and consider alternative opportunities with stronger fundamentals and more stable price trends.

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