Reliance Communications Ltd Hits Lower Circuit Amid Heavy Selling Pressure

Market Performance and Price Action

Reliance Communications Ltd (RCom), a micro-cap player in the Telecom - Services sector, saw its stock price decline sharply by ₹0.04, or 4.17%, settling at ₹0.92. This marks the stock’s lowest level in the past year, reflecting sustained bearish sentiment. The stock’s price band for the day was ₹0.92 to ₹0.96, with the lower circuit triggered at ₹0.92, indicating that the maximum permissible fall was reached and trading was halted to curb further losses.

The total traded volume was substantial at 24.87 lakh shares, yet the turnover remained modest at ₹0.23 crore, highlighting the stock’s micro-cap status and relatively low liquidity. Despite this, delivery volumes surged to 13.98 lakh shares on 23 Feb 2026, a remarkable 210.56% increase over the five-day average, signalling rising investor participation amid the sell-off.

Sector and Market Context

The Telecom - Services sector itself was under pressure, declining by 3.16% on the day, but Reliance Communications notably underperformed the sector by 1.38%. The benchmark Sensex fell by 0.89%, underscoring that the stock’s steep fall was not merely a reflection of broader market weakness but driven by company-specific factors and investor panic.

Reliance Communications has been on a downward trajectory for the past two days, cumulatively losing 8.91% in value. The stock is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a persistent bearish trend and weak technical momentum.

Investor Sentiment and Supply-Demand Dynamics

The triggering of the lower circuit is a clear indication of panic selling and an overwhelming supply of shares that buyers were unwilling to absorb. The unfilled supply at the lower price limit suggests that sellers dominated the market, pushing the stock down aggressively. This selling pressure is exacerbated by the stock’s micro-cap status and limited liquidity, which can amplify price movements on relatively modest volumes.

Market participants appear cautious, with many opting to exit positions amid concerns over the company’s fundamentals and outlook. The Mojo Score for Reliance Communications stands at a weak 3.0, with a Strong Sell grade assigned on 13 Jan 2025, upgraded from a Sell rating, reflecting deteriorated fundamentals and heightened risk.

Financial and Market Capitalisation Overview

Reliance Communications Ltd currently holds a market capitalisation of ₹254.43 crore, categorising it as a micro-cap stock. This small market cap, combined with its weak liquidity profile, makes the stock vulnerable to sharp price swings and heightened volatility. The stock’s liquidity is sufficient for trade sizes up to ₹0.01 crore, based on 2% of the five-day average traded value, but this remains limited compared to larger peers.

The company’s deteriorating fundamentals and weak market positioning have contributed to the negative sentiment. The downgrade to a Strong Sell grade by MarketsMOJO reflects concerns over profitability, cash flow generation, and competitive pressures within the telecom services sector.

Technical Indicators and Trend Analysis

Technical analysis reveals that Reliance Communications is firmly entrenched in a downtrend. The stock’s price is below all major moving averages, indicating sustained selling momentum. The consecutive two-day fall and the breach of the ₹1.00 psychological level have intensified bearish sentiment.

Such technical weakness often triggers stop-loss orders and margin calls, further accelerating the sell-off. The lower circuit hit today is a manifestation of this technical breakdown, signalling that the stock is struggling to find support at current levels.

Outlook and Investor Considerations

Given the current market dynamics, investors should exercise caution with Reliance Communications Ltd. The stock’s strong sell rating and poor mojo score suggest that downside risks remain elevated. The micro-cap nature of the stock, combined with low liquidity and heavy selling pressure, increases the likelihood of continued volatility and price erosion.

Investors seeking exposure to the telecom sector may consider more stable and fundamentally sound alternatives, especially those with larger market caps and better liquidity profiles. The sector’s overall decline today indicates broader challenges, but Reliance Communications’ underperformance highlights company-specific issues that warrant close monitoring.

Conclusion

Reliance Communications Ltd’s plunge to the lower circuit limit on 24 Feb 2026 underscores the intense selling pressure and negative sentiment surrounding the stock. The maximum daily loss of 4.17%, combined with unfilled supply and panic selling, highlights the challenges faced by this micro-cap telecom services provider.

With a Strong Sell rating and deteriorating fundamentals, investors should remain cautious and consider more stable options within the sector. The stock’s technical and fundamental outlook suggests that the current downtrend may persist, and recovery could be protracted without significant positive catalysts.

Monitoring liquidity, delivery volumes, and sector trends will be crucial for assessing future price movements. For now, Reliance Communications remains a high-risk proposition amid a challenging market environment.

Only Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Start Today