Intraday Volatility and Price Action
On 8 Jan 2026, Reliable Data Services Ltd opened with a gap-up of 3.1%, reaching an intraday high of ₹174.1, which was also a new 52-week high. However, the optimism quickly faded as the stock succumbed to heavy selling, hitting its lower circuit price band of ₹160.43 by the close. This represented a maximum daily loss of 5.0%, the full extent of the permitted price band for the day.
The stock exhibited high intraday volatility of 5.46%, calculated from the weighted average price, reflecting the sharp swings between the day’s high and low. Despite the initial buying enthusiasm, the weighted average price indicated that most volume traded closer to the lower price levels, signalling dominant bearish sentiment.
Trading Volumes and Liquidity
Trading volumes were moderate, with total traded volume at approximately 33,347 shares (0.33347 lakhs) and turnover of ₹0.55 crore. While the stock remains liquid enough for small trade sizes, the delivery volume on 7 Jan rose by 24.45% compared to the five-day average, indicating increased investor participation ahead of the sell-off. This surge in delivery volume suggests that some investors may have been locking in profits after the recent rally.
Sector and Market Context
Reliable Data Services Ltd underperformed its NBFC sector peers, which declined by 1.96% on the same day, and the broader Sensex index, which fell by 0.92%. The stock’s 5.0% drop was significantly sharper than both benchmarks, highlighting the severity of the selling pressure specific to this micro-cap NBFC.
Despite the setback, the stock continues to trade above its key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — indicating that the longer-term uptrend remains intact. However, the seven-day winning streak ended abruptly, signalling a potential trend reversal or at least a short-term correction.
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Investor Sentiment and Market Reaction
The sharp decline and circuit hit reflect a wave of panic selling among investors, likely triggered by profit-booking after the stock’s recent rally to a 52-week high. The unfilled supply at lower price levels suggests that sellers overwhelmed buyers, pushing the stock down to the maximum permissible loss for the day.
Market participants should note that such circuit hits often indicate heightened volatility and uncertainty. While some investors may view this as a buying opportunity given the stock’s strong fundamentals and recent upgrades, others may remain cautious until the selling pressure subsides.
Fundamental and Rating Update
Reliable Data Services Ltd holds a Mojo Score of 74.0 and was recently upgraded from a Hold to a Buy rating on 6 Jan 2026, reflecting improved confidence in the company’s prospects. The micro-cap NBFC has a market capitalisation of ₹175 crore and a Market Cap Grade of 4, indicating moderate size within its segment.
The upgrade was based on positive fundamental trends and sector outlook, but the current price action underscores the risks associated with micro-cap stocks, including liquidity constraints and susceptibility to sharp price swings.
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Outlook and Investor Considerations
Investors should carefully monitor the stock’s price action in the coming sessions. The lower circuit hit may act as a short-term support level, but sustained selling pressure could lead to further declines. Given the stock’s micro-cap status, volatility is expected to remain elevated.
Long-term investors may find value in the company’s improving fundamentals and recent rating upgrade, but should be prepared for potential price fluctuations. Traders might consider the stock’s technical indicators and volume patterns before making entry or exit decisions.
Overall, Reliable Data Services Ltd’s performance on 8 Jan 2026 serves as a reminder of the risks inherent in small-cap NBFC stocks, where market sentiment can shift rapidly, causing sharp price movements and circuit hits.
Summary
To summarise, Reliable Data Services Ltd experienced a significant setback on 8 Jan 2026, hitting its lower circuit limit of ₹160.43 after a volatile session marked by heavy selling and panic among investors. Despite a strong start to the day and a recent upgrade to a Buy rating, the stock underperformed its sector and the broader market. The unfilled supply and increased delivery volumes highlight the ongoing pressure, making it essential for investors to weigh the risks and fundamentals carefully.
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