Refex Industries Hits Lower Circuit Amid Heavy Selling Pressure

Intraday Price Movement and Volatility

The stock opened sharply lower by 7.38% compared to the previous close, signalling immediate bearish sentiment among investors. Throughout the day, Refex Industries traded within a wide price range of ₹42, fluctuating between a high of ₹296.9 and the intraday low of ₹254.9, which was also the closing price. This wide range underscores the heightened volatility experienced by the stock, with an intraday volatility measure of 9.93% calculated from the weighted average price.

The weighted average price indicated that the majority of the trading volume clustered near the day’s low, suggesting persistent selling interest and limited buying support at higher levels. This pattern is often indicative of panic selling, where investors rush to exit positions amid uncertainty or negative sentiment.

Volume and Liquidity Dynamics

Trading volumes were notably elevated, with total traded volume reaching approximately 64.8 lakh shares, generating a turnover of ₹174.64 crore. This volume figure is significant for a small-cap stock like Refex Industries, which has a market capitalisation of around ₹3,757 crore. The liquidity was sufficient to accommodate trade sizes of up to ₹0.21 crore based on 2% of the five-day average traded value, indicating that despite the heavy selling, the stock remained accessible for active trading.

Delivery volumes also showed a marked increase, with 1.76 lakh shares delivered on 11 Dec 2025, representing a 26.73% rise compared to the five-day average delivery volume. This rise in delivery volume suggests that a larger proportion of investors were holding onto their shares rather than intraday trading, possibly reflecting a mix of long-term holders and forced sellers.

Comparative Performance and Sector Context

Refex Industries underperformed its sector peers on the day, with the stock’s 19.99% loss contrasting sharply against the Other Chemical products sector’s decline of just 0.67%. The benchmark Sensex index recorded a modest gain of 0.24%, highlighting that the stock’s fall was largely idiosyncratic rather than driven by broader market weakness.

The stock has been on a downward trajectory for three consecutive trading sessions, cumulatively losing 22.08% over this period. This sustained decline has pushed the share price to its lowest level in the past 52 weeks, raising concerns about the company’s near-term outlook among investors.

Technical Indicators and Moving Averages

From a technical perspective, Refex Industries is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This positioning typically signals a bearish trend and may deter short-term buying interest until a clear reversal pattern emerges.

The stock’s price band for the day was set at ₹20, which is the maximum permissible price movement limit for the session. Hitting the lower circuit indicates that the stock’s price decline was capped by regulatory limits, preventing further falls during the trading day. Such circuit limits are designed to curb excessive volatility and provide a cooling-off period for market participants.

Market Sentiment and Investor Behaviour

The sharp fall and circuit hit reflect a scenario of panic selling, where investors rush to liquidate holdings amid negative news flow or deteriorating fundamentals. The unfilled supply of shares at higher price levels suggests that buyers were scarce, exacerbating the downward pressure on the stock.

Given the stock’s small-cap status and the sector’s inherent cyclicality, investor sentiment can be particularly sensitive to changes in market conditions or company-specific developments. The current trading pattern indicates a cautious stance among market participants, with many opting to exit positions rather than accumulate at these levels.

Outlook and Considerations for Investors

While the recent price action in Refex Industries reflects significant selling pressure and a bearish market assessment, investors should consider the broader context before making decisions. The stock’s current valuation and technical positioning may offer entry points for long-term investors who believe in the company’s fundamentals and sector prospects.

However, the persistent decline and failure to attract buyers at higher levels suggest that caution is warranted. Monitoring upcoming corporate announcements, sector developments, and overall market conditions will be crucial in assessing the stock’s potential recovery or further downside risk.

In summary, Refex Industries’ lower circuit hit on 12 Dec 2025 highlights a day of intense market activity marked by panic selling, unfilled supply, and a sharp price correction. The stock’s performance contrasts with broader market trends and sector movements, underscoring company-specific challenges that investors need to analyse carefully.

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