Key Events This Week
19 Jan: Stock opens strong at Rs.433.15 (+1.93%) despite Sensex decline
20 Jan: Intraday low hit amid heavy price pressure, closing at Rs.400.60 (-7.51%)
21 Jan: Technical momentum shifts with further decline to Rs.381.55 (-4.76%)
22 Jan: Partial recovery to Rs.393.80 (+3.21%) on positive market bounce
23 Jan: Week closes lower at Rs.378.80 (-3.81%) amid renewed selling
19 January 2026: Strong Start Amid Market Weakness
MM Forgings Ltd. began the week on a positive note, closing at Rs.433.15, up 1.93% despite the Sensex falling 0.49% to 36,650.97. This initial strength suggested some resilience in the stock, supported by a moderate volume of 5,518 shares. The broader market weakness, however, foreshadowed challenges ahead as the Sensex was under pressure from global and domestic factors.
20 January 2026: Intraday Low and Sharp Price Pressure
The stock faced significant selling pressure on 20 January, plunging 7.51% to close at Rs.400.60, with an intraday low of Rs.401.75. This decline was sharper than the Sensex’s 1.82% fall to 35,984.65, indicating stock-specific weakness. The drop reversed the prior two-day gains and reflected a technical pullback as the price fell below the 5-day moving average, signalling short-term bearish momentum. Volume surged to 9,337 shares, highlighting active trading and profit-taking.
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21 January 2026: Technical Momentum Shifts Amid Mixed Signals
On 21 January, MM Forgings continued its decline, closing at Rs.381.55, down 4.76%, while the Sensex fell a milder 0.47% to 35,815.26. The stock’s technical momentum shifted from bullish to mildly bullish, with mixed signals across key indicators. The weekly MACD remained positive, suggesting medium-term strength, but the monthly MACD turned bearish, indicating longer-term caution. The Relative Strength Index (RSI) hovered in neutral territory, reflecting consolidation rather than decisive direction.
Bollinger Bands showed a mildly bullish weekly stance but a bearish monthly outlook, highlighting volatility and potential range-bound trading. Daily moving averages remained supportive, but the sharp price drop tested these levels. On-Balance Volume (OBV) readings were bullish, signalling ongoing accumulation despite price weakness. The stock’s 5-year and 10-year returns outperformed the Sensex, underscoring resilience amid short-term volatility.
22 January 2026: Partial Recovery on Market Bounce
MM Forgings rebounded on 22 January, gaining 3.21% to close at Rs.393.80, supported by a Sensex rise of 0.76% to 36,088.66. The recovery followed a broad market bounce and lower volume of 2,968 shares, indicating cautious buying. This uptick suggested some short-term relief after the prior declines, though the stock remained below its week’s opening price and key moving averages.
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23 January 2026: Renewed Selling Pressure Closes Week Lower
The week ended with renewed selling, as MM Forgings declined 3.81% to Rs.378.80, while the Sensex dropped 1.33% to 35,609.90. The low volume of 1,633 shares suggested limited buying interest. The stock’s weekly performance of -10.86% significantly underperformed the Sensex’s -3.31%, reflecting heightened volatility and investor caution. The Mojo Score of 54.0 and Hold rating reinforce a neutral stance amid these mixed technical and market signals.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-01-19 | Rs.433.15 | +1.93% | 36,650.97 | -0.49% |
| 2026-01-20 | Rs.400.60 | -7.51% | 35,984.65 | -1.82% |
| 2026-01-21 | Rs.381.55 | -4.76% | 35,815.26 | -0.47% |
| 2026-01-22 | Rs.393.80 | +3.21% | 36,088.66 | +0.76% |
| 2026-01-23 | Rs.378.80 | -3.81% | 35,609.90 | -1.33% |
Key Takeaways
Positive Signals: Despite the weekly decline, MM Forgings remains above its 52-week low of Rs.276.05 and continues to outperform the Sensex over longer timeframes such as one month, year-to-date, five years, and ten years. The weekly MACD and OBV indicators suggest underlying medium-term strength and accumulation by investors. The stock’s Mojo Score of 54.0 and Hold rating reflect a balanced view, acknowledging resilience amid volatility.
Cautionary Signals: The sharp intraday price drops on 20 and 21 January, with declines of 7.51% and 4.76% respectively, indicate short-term selling pressure and technical weakness. The monthly MACD and Bollinger Bands signal bearish longer-term momentum, while the stock’s failure to sustain gains above short-term moving averages points to potential further downside risk. The low volumes on the week’s final day suggest limited buying interest to support a recovery.
Conclusion
MM Forgings Ltd. faced a turbulent week marked by significant price declines and mixed technical signals. While short-term momentum weakened sharply amid broader market pressures, medium- and long-term indicators remain cautiously optimistic. The stock’s underperformance relative to the Sensex highlights the challenges it faces in the current environment, but its historical resilience and ongoing accumulation suggest that the recent weakness may be a correction rather than a trend reversal. Investors should monitor key technical levels and sector developments closely as the stock navigates this volatile phase.
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