Nidhi Granites Faces Intense Selling Pressure Amid Consecutive Losses

Market Performance Overview

On 25 Nov 2025, Nidhi Granites recorded a marginal decline of 0.12%, underperforming the Sensex which posted a gain of 0.15% on the same day. This daily performance is part of a broader downward trend, with the stock showing a 5.97% fall over the past week compared to the Sensex’s modest 0.42% rise. The one-month figures reveal a sharper contrast: Nidhi Granites declined by 12.43%, while the Sensex advanced by 0.97%.

Despite these recent setbacks, the company’s longer-term returns remain robust. Over three months, Nidhi Granites has appreciated by 38.75%, significantly outpacing the Sensex’s 4.16% gain. The one-year performance is even more striking, with the stock rising 91.91% against the Sensex’s 6.14%. Year-to-date, the stock has delivered a 78.14% return, compared to the benchmark’s 8.82%.

Extending the horizon further, Nidhi Granites has demonstrated extraordinary growth over three, five, and ten years, with returns of 1131.95%, 3166.80%, and 2367.69% respectively. These figures dwarf the Sensex’s corresponding gains of 36.50%, 94.01%, and 229.89%, underscoring the company’s historical outperformance within the miscellaneous sector.

Trading Activity and Price Dynamics

Today’s trading session was marked by an unusual phenomenon: the order book for Nidhi Granites contained exclusively sell orders, with no buyers present. This extreme selling pressure is a rare occurrence and typically indicative of distress selling or a strong bearish sentiment among market participants. The stock has also recorded losses for two consecutive days, accumulating a decline of 2.11% during this period.

Adding to the erratic trading pattern, Nidhi Granites did not trade on one day out of the last 20 trading sessions, suggesting intermittent liquidity challenges or cautious investor behaviour. The stock’s moving averages present a mixed picture: it remains above its 50-day, 100-day, and 200-day moving averages, signalling underlying medium- to long-term strength. However, it trades below its 5-day and 20-day moving averages, reflecting short-term weakness and recent downward momentum.

Sector and Industry Context

Nidhi Granites operates within the miscellaneous sector, a category that often encompasses diverse and niche industries. The sector’s performance has been relatively stable, with the Sensex’s gains reflecting broader market confidence. However, the stock’s recent underperformance relative to its sector peers and benchmark indices highlights a divergence that warrants close attention.

Investors may interpret the current selling pressure as a reaction to sector-specific challenges or company-specific developments. The absence of buyers today suggests a lack of immediate demand, which could be driven by concerns over valuation, earnings prospects, or external market factors impacting the miscellaneous industry.

Implications of Consecutive Losses and Selling Pressure

Consecutive declines over two days, coupled with a 2.11% cumulative loss, indicate a shift in market sentiment. The complete dominance of sell orders in the trading queue is a strong signal of distress selling, where holders may be offloading shares rapidly, possibly due to negative news flow, profit-booking, or risk aversion.

Such intense selling pressure without counterbalancing buying interest can lead to increased volatility and price gaps, potentially exacerbating the downward trend. Market participants should monitor whether this pattern persists or if buying interest re-emerges to stabilise the stock price.

Technical Indicators and Moving Averages

The stock’s position relative to its moving averages offers insight into its technical health. Being above the 50-day, 100-day, and 200-day averages suggests that the medium- and long-term trends remain intact, reflecting sustained investor confidence over extended periods. However, trading below the 5-day and 20-day averages points to short-term weakness and recent selling pressure.

This divergence between short- and long-term indicators may signal a temporary correction within a broader uptrend, but it also highlights the need for caution as the stock navigates this volatile phase.

Investor Considerations and Outlook

Investors analysing Nidhi Granites should weigh the current selling pressure against the company’s impressive long-term returns and sector positioning. While the recent absence of buyers and consecutive losses raise caution flags, the stock’s sustained outperformance over multiple years suggests underlying strength.

Market participants may wish to monitor upcoming corporate announcements, sector developments, and broader market trends to better understand the drivers behind the current selling intensity. Additionally, attention to volume patterns and order book dynamics in the coming sessions will be crucial to gauge whether the distress selling is a transient phase or indicative of deeper concerns.

Given the erratic trading observed recently, liquidity considerations should also factor into investment decisions, especially for those with shorter investment horizons.

Summary

Nidhi Granites Ltd is currently experiencing a pronounced selling wave, with no buyers present in the order queue and a two-day losing streak resulting in a 2.11% decline. This contrasts with the broader market’s modest gains and the company’s strong historical performance. The stock’s technical indicators reveal short-term weakness amid longer-term strength, while erratic trading patterns suggest heightened investor caution. Market watchers should remain vigilant to further developments as the stock navigates this challenging period.

Get 2 full years of MojoOne Premium for only Rs. 12,999. Subscribe for 1 year and we'll add another year FREE. Offer valid for a limited time. Start Saving Now →