Reliance Communications Ltd’s Volatile Week: 0.95% Gain Amid Sharp Swings and Circuit Hits

19 January 2026: Stock Hits 52-Week Low at Rs.1.03 Amid Downtrend

Reliance Communications Ltd opened the week on a weak note, closing at Rs.1.03 on 19 January 2026, marking a fresh 52-week low. The stock declined 0.95% on the day, underperforming the Sensex which fell 0.49%. This drop was part of a three-day losing streak, reflecting sustained bearish momentum as the share price traded below all key moving averages. The company’s deteriorating financials, including a net loss of Rs. -85 crores in the September 2025 quarter and a negative operating profit to interest coverage ratio, weighed heavily on investor sentiment.

20 January 2026: New 52-Week Low at Rs.1 Amid Continued Selling

The downtrend intensified on 20 January, with the stock hitting a new 52-week low of Rs.1, a 3.85% decline on the day. This extended the cumulative four-day loss to 6.54%, significantly underperforming the Sensex’s 1.82% drop. The stock’s negative fundamentals, including a negative book value and stagnant operating profit, continued to pressure prices. The broader market also remained weak, but Reliance Communications’ sharper decline highlighted company-specific challenges.

21 January 2026: Shares Fall to Rs.0.95, Hit Lower Circuit Amid Heavy Selling

On 21 January, Reliance Communications Ltd’s stock plunged further to Rs.0.95, marking another 52-week low and triggering the lower circuit breaker with a 3.03% intraday loss. The stock underperformed both its sector and the Sensex, which declined 0.47% that day. Heavy volumes of 21.56 lakh shares traded, but delivery volumes fell, indicating short-term speculative activity rather than long-term accumulation. The persistent trading below all moving averages and the company’s weak financial metrics, including a negative EBITDA and a debt-to-equity ratio of -0.49 times, reinforced the bearish outlook.

22 January 2026: Sharp Rebound with Upper Circuit Surge of 4.21%

After nine consecutive days of decline, the stock staged a notable recovery on 22 January, hitting the upper circuit limit with a 4.21% gain to close at Rs.0.99. This surge was driven by strong buying interest and a significant increase in delivery volumes, which rose 75.4% compared to the five-day average. Despite this rebound, the stock remained below all major moving averages, and the company’s Mojo Grade stayed at Strong Sell. The upper circuit triggered a regulatory freeze, reflecting intense demand amid constrained supply.

23 January 2026: Another Upper Circuit Hit Closes Week at Rs.1.06

The positive momentum continued on 23 January, with Reliance Communications Ltd surging 4.04% to close at Rs.1.06, again hitting the upper circuit limit. The stock outperformed the Telecom - Services sector and the Sensex, which declined 1.33% that day. Delivery volumes increased by 20.89% over the five-day average, signalling growing investor interest. Technically, the stock moved above its 5-day moving average but remained below longer-term averages, indicating short-term bullishness amid a longer-term downtrend. The company’s micro-cap status and Strong Sell rating highlight ongoing fundamental risks despite the recent price gains.

Key Takeaways from the Week

Positive Signals: The stock’s 0.95% weekly gain outpaced the Sensex’s 3.31% decline, driven by strong buying interest in the last two sessions that triggered consecutive upper circuit hits. Delivery volumes rose significantly, indicating increased investor participation and potential accumulation at lower price levels. The short-term technical momentum improved with the stock moving above its 5-day moving average by week’s end.

Cautionary Signals: Despite the recent rebound, Reliance Communications Ltd remains fundamentally weak with a Strong Sell Mojo Grade and a Mojo Score of 3.0. The company’s financials continue to show negative profitability, high debt levels, and a negative book value. The stock’s micro-cap status and persistent trading below longer-term moving averages suggest elevated volatility and risk. The week’s early sharp declines and lower circuit hit underscore ongoing selling pressure and market scepticism.

Conclusion

Reliance Communications Ltd’s week was characterised by extreme volatility, with the stock hitting multiple 52-week lows before staging a strong technical rebound capped by two upper circuit hits. While the stock outperformed the Sensex over the week, the underlying fundamentals remain challenging, reflected in the company’s negative earnings, high leverage, and a Strong Sell rating from MarketsMOJO. The surge in delivery volumes and short-term price strength may offer some respite, but investors should remain cautious given the company’s structural headwinds and micro-cap volatility. The coming weeks will be critical to assess whether this technical bounce can translate into a sustained recovery or remains a short-lived correction within a broader downtrend.

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