Reliance Infrastructure Hits Lower Circuit Amid Heavy Selling Pressure

Intraday Price Movement and Market Reaction

Reliance Infrastructure opened the trading session with a gap down of 2.07%, signalling immediate bearish sentiment. The stock's price touched an intraday low of ₹162, representing a 5.0% drop from the previous close. This decline culminated in the stock hitting the maximum permissible daily loss limit, triggering the lower circuit breaker and halting further trading declines for the day.

The weighted average price for the day was skewed towards the lower end of the price band, indicating that the majority of traded volumes occurred near the day's low. This pattern suggests persistent selling interest throughout the session, with buyers reluctant to step in at higher levels.

Volume and Liquidity Analysis

Trading volumes were substantial, with total traded volume reaching approximately 17.29 lakh shares. The turnover for the day stood at ₹28.76 crore, reflecting active participation despite the downward price movement. Notably, delivery volumes on 20 Nov 2025 surged by over 108% compared to the five-day average, signalling rising investor involvement but predominantly on the sell side.

Liquidity metrics indicate that the stock remains sufficiently liquid for trades up to ₹0.66 crore based on 2% of the five-day average traded value, allowing for sizeable transactions without significant market impact. However, the prevailing market mood has led to a predominance of unfilled sell orders, contributing to the price pressure.

Technical Indicators and Moving Averages

Reliance Infrastructure's share price is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning reflects sustained downward momentum and a lack of short-term support levels. The stock's current market capitalisation stands at approximately ₹6,894 crore, categorising it as a small-cap entity within the power sector.

The stock has recorded a consecutive four-day decline, accumulating a total loss of 13.82% over this period. This trend contrasts with the broader power sector, which experienced a more modest one-day decline of 0.82%, and the Sensex, which fell by 0.44% on the same day. Such relative underperformance highlights the specific challenges facing Reliance Infrastructure amid sectoral headwinds.

Sectoral Context and Market Sentiment

The power sector has been under pressure recently due to a combination of regulatory uncertainties and fluctuating demand patterns. Reliance Infrastructure's sharper decline relative to its peers suggests company-specific concerns may be amplifying the negative sentiment. The stock's fall to a new 52-week low underscores the cautious stance adopted by investors, who appear to be reacting to both fundamental and technical signals.

Market participants have noted the presence of panic selling, with a significant volume of unfilled supply orders contributing to the downward price spiral. The lower circuit hit effectively capped losses for the day but also signals heightened volatility and uncertainty surrounding the stock's near-term prospects.

Investor Participation and Delivery Trends

Investor participation has shown a notable rise, as evidenced by the delivery volume of 3.56 lakh shares on 20 Nov 2025, which is more than double the recent average. This increase in delivery volume typically indicates stronger conviction among investors, though in this case, the trend appears to be skewed towards selling rather than accumulation.

The stock's liquidity profile remains adequate for institutional and retail investors alike, but the prevailing market dynamics have led to a predominance of sell orders that remain unfilled, exacerbating the price decline. This imbalance between supply and demand has been a key driver behind the stock's lower circuit status.

Outlook and Considerations for Investors

Reliance Infrastructure's current price action reflects a challenging environment marked by heavy selling pressure and limited buying interest. The breach of multiple moving averages and the establishment of a new 52-week low suggest that the stock is in a bearish phase. Investors should carefully monitor developments in the power sector and any company-specific news that could influence future performance.

Given the stock's recent underperformance relative to the sector and broader market indices, a cautious approach is warranted. Market participants may wish to observe whether the stock stabilises above key support levels or continues to face selling pressure in the coming sessions.

Summary

Reliance Infrastructure Ltd's stock experienced a significant decline on 21 Nov 2025, hitting its lower circuit limit at ₹162 and marking a new 52-week low. The stock underperformed both its sector and the Sensex, with a one-day loss of 3.86%. Heavy volumes traded near the day's low, reflecting sustained selling pressure and panic selling. Despite adequate liquidity, unfilled supply orders contributed to the sharp fall. The stock remains below all major moving averages, signalling continued bearish momentum amid a challenging power sector backdrop.

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