Rajesh Exports Ltd. Hits Lower Circuit Amid Heavy Selling Pressure

Intraday Price Movement and Circuit Breaker Trigger

On 12 Jan 2026, Rajesh Exports Ltd. (Series BZ) recorded a maximum intraday price drop of 3.96%, touching a low of ₹162.25 before settling at ₹163.00. The stock’s price band was set at 5%, and it declined by ₹5.68 from the previous close, triggering the lower circuit breaker. This mechanism halted further trading to prevent excessive volatility, reflecting the severity of the sell-off.

The total traded volume stood at 39,564 shares (0.39564 lakh), with a turnover of ₹0.647 crore. Notably, the weighted average price was closer to the day’s low, indicating that most trades occurred near the bottom end of the price range, a classic sign of sustained selling pressure.

Performance Relative to Sector and Market Benchmarks

Rajesh Exports underperformed its sector, Gems, Jewellery and Watches, which declined by only 0.25% on the same day. The broader Sensex index fell by 0.47%, further highlighting the stock’s disproportionate weakness. Over the last four consecutive trading sessions, the stock has lost 6.77%, signalling a persistent downtrend that has eroded investor confidence.

The stock’s current trading price is below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — underscoring a bearish technical setup. This sustained weakness across multiple timeframes suggests that the stock is struggling to find support amid the ongoing market pressures.

Declining Investor Participation and Liquidity Analysis

Investor participation has notably diminished, with delivery volumes falling sharply. On 9 Jan 2026, delivery volume was recorded at 14,350 shares, a decline of 58.18% compared to the five-day average delivery volume. This drop in delivery volume indicates that fewer investors are holding the stock for the long term, possibly due to concerns over the company’s near-term prospects.

Despite the decline, liquidity remains adequate for moderate trade sizes. Based on 2% of the five-day average traded value, the stock can accommodate trades worth approximately ₹0.09 crore without significant market impact. However, the current selling pressure and unfilled supply suggest that liquidity is being tested under bearish conditions.

Mojo Score and Rating Update

Rajesh Exports currently holds a Mojo Score of 47.0, which places it in the 'Sell' category, a downgrade from its previous 'Hold' rating as of 31 Dec 2025. This rating reflects deteriorating fundamentals and technical indicators, signalling caution for investors. The company’s market capitalisation stands at ₹4,990 crore, categorising it as a small-cap stock within the Gems, Jewellery and Watches sector.

Sectoral and Market Context

The Gems, Jewellery and Watches sector has faced headwinds recently, with fluctuating gold prices and global economic uncertainties impacting demand and margins. Rajesh Exports, being a key player, is not immune to these challenges. The stock’s underperformance relative to its sector peers and the broader market suggests that investors are factoring in these risks more heavily for this company.

Technical Indicators and Moving Averages

Trading below all major moving averages indicates a bearish trend that may continue unless there is a significant catalyst to reverse sentiment. The 5-day, 20-day, 50-day, 100-day, and 200-day moving averages all lie above the current price, signalling resistance levels that the stock must overcome to regain momentum.

Investor Sentiment and Market Psychology

The sharp decline and circuit hit have likely triggered panic selling among retail and institutional investors alike. The unfilled supply at lower price levels suggests that sellers are eager to exit positions, while buyers remain hesitant to step in, creating a supply-demand imbalance that exacerbates downward pressure.

Outlook and Considerations for Investors

Given the current technical weakness, reduced investor participation, and negative rating revision, investors should approach Rajesh Exports with caution. While the company’s fundamentals may offer some long-term value, the near-term outlook appears challenging amid sectoral headwinds and market volatility.

Summary

Rajesh Exports Ltd.’s breach of the lower circuit limit on 12 Jan 2026 highlights the intense selling pressure and negative sentiment surrounding the stock. With a 3.38% daily loss, underperformance relative to sector and market indices, and a downgrade to a 'Sell' rating, the stock faces significant headwinds. Investors should monitor liquidity conditions and technical signals closely before considering exposure, as the current environment suggests continued volatility and risk.

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