GVK Power & Infrastructure Ltd Hits Upper Circuit Amid Strong Buying Pressure

Strong Buying Momentum Drives Price to Upper Circuit

GVK Power & Infrastructure Ltd (stock code 421897) witnessed a significant price rally on 18 Feb 2026, closing at ₹3.05, up ₹0.05 or 1.67% from the previous close. The stock touched a high of ₹3.06 during the session, reaching the maximum permissible daily price band of 2%. This upper circuit hit underscores intense buying pressure, with total traded volume reaching approximately 4.89 lakh shares and turnover amounting to ₹0.15 crore.

The stock’s performance notably outpaced the Construction sector, which declined marginally by 0.03%, and the Sensex, which remained flat on the day. This divergence highlights selective investor interest in GVK Power amid a generally subdued market environment.

Price and Volume Dynamics Signal Reversal

After two consecutive sessions of decline, GVK Power & Infrastructure Ltd’s stock demonstrated a clear trend reversal. The price closed above its 20-day moving average, signalling short-term strength, although it remains below its 5-day, 50-day, 100-day, and 200-day moving averages, indicating that the broader trend remains under pressure.

However, delivery volume data reveals a contrasting picture. On 17 Feb 2026, delivery volume stood at 40,560 shares, a sharp decline of 58.91% compared to the five-day average delivery volume. This suggests that while intraday trading volumes surged, actual investor participation in terms of holding shares overnight has diminished, pointing to speculative interest driving the price spike.

Regulatory Freeze and Unfilled Demand Amplify Price Action

The upper circuit hit triggered an automatic regulatory freeze on the stock’s trading, preventing further transactions at the capped price for the remainder of the day. This mechanism is designed to curb excessive volatility and protect investors from abrupt price swings.

Market participants noted a significant unfilled demand at the upper price band, indicating that buy orders exceeded sell orders substantially. This imbalance often reflects positive sentiment or speculative interest, especially in micro-cap stocks like GVK Power, which has a market capitalisation of approximately ₹482 crore.

Fundamental Context and Market Sentiment

GVK Power & Infrastructure Ltd operates within the Construction industry, a sector that has faced mixed fortunes amid fluctuating infrastructure investments and regulatory challenges. Despite the recent price surge, the company’s Mojo Score remains low at 12.0, with a Strong Sell grade assigned on 26 Feb 2024, an upgrade from a Sell rating. This reflects ongoing concerns about the company’s fundamentals and risk profile.

Investors should note that the stock’s liquidity, based on 2% of the five-day average traded value, supports trade sizes up to ₹0 crore, indicating limited depth and potential for price manipulation in thinly traded conditions.

Technical Indicators and Moving Averages

From a technical perspective, the stock’s price action today is encouraging in the short term, having crossed above the 20-day moving average. However, it remains below longer-term averages, signalling that the broader downtrend has not yet been reversed. Traders should exercise caution, as the stock’s volatility and low liquidity can lead to sharp price movements in either direction.

Sector and Market Comparison

While GVK Power & Infrastructure Ltd outperformed its sector by 1.82% on the day, the Construction sector itself was marginally down by 0.03%, and the Sensex index remained unchanged. This relative outperformance may attract short-term traders looking to capitalise on momentum, but the underlying sector challenges and company-specific risks remain pertinent.

Investor Takeaway and Outlook

GVK Power & Infrastructure Ltd’s upper circuit hit on 18 Feb 2026 highlights a day of strong speculative buying and short-term optimism. However, the stock’s micro-cap status, limited liquidity, and a Strong Sell Mojo Grade caution investors to approach with prudence.

For long-term investors, the stock’s fundamental challenges and subdued delivery volumes suggest that the recent price spike may not be sustainable without corresponding improvements in company performance or sectoral tailwinds. Traders may consider monitoring the stock for further technical confirmation before committing capital.

Meanwhile, the regulatory freeze and unfilled demand at the upper circuit price underscore the volatility inherent in such stocks, emphasising the need for disciplined risk management.

Summary

In summary, GVK Power & Infrastructure Ltd’s price surge to the upper circuit limit reflects a combination of strong intraday buying interest, limited liquidity, and speculative demand. While the stock outperformed its sector and broader market indices, investors should weigh this against the company’s fundamental weaknesses and recent downgrade to a Strong Sell rating. The regulatory freeze mechanism and unfilled demand highlight the stock’s volatility, making it a high-risk proposition in the current market environment.

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