Reliance Infrastructure Hits Lower Circuit Amid Heavy Selling Pressure

Intraday Price Movement and Circuit Breaker Activation

On the trading day, Reliance Infrastructure’s share price touched an intraday low of ₹157.02, marking a fresh 52-week low for the power sector company. The stock’s price band was set at ₹5, and it closed near the lower threshold at ₹157.35, reflecting a decline of 4.8% from the previous close. This movement triggered the lower circuit breaker, halting further declines and underscoring the severity of the selling pressure.

The stock’s high for the day was ₹168.00, indicating a wide intraday range of nearly ₹11, but the weighted average price suggests that the bulk of trading volume occurred closer to the lower end of this range. This pattern is indicative of persistent bearish sentiment throughout the session, with sellers dominating the market.

Volume and Liquidity Analysis

Trading volumes for Reliance Infrastructure reached approximately 10.9 lakh shares, generating a turnover of ₹17.42 crore. Despite the heavy volume, delivery volumes have shown a decline, with only 1.36 lakh shares delivered on 21 Nov 2025, down by 19.84% compared to the five-day average. This reduction in delivery volume suggests that investors are increasingly reluctant to hold the stock, opting instead for short-term trading or exiting positions altogether.

Liquidity remains adequate for moderate trade sizes, with the stock’s average traded value supporting transactions up to ₹0.74 crore based on 2% of the five-day average. However, the prevailing market sentiment has led to a predominance of unfilled supply, as sellers outnumber buyers, pushing the stock to its circuit limit.

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 highlights a sustained bearish trend and suggests limited near-term support levels. The stock’s consecutive decline over the past five trading sessions has resulted in a cumulative loss of 16.94%, further emphasising the downward momentum.

Compared to the power sector’s performance, Reliance Infrastructure underperformed by 4.07% on the day, while the broader Sensex index remained largely flat with a marginal gain of 0.03%. This divergence points to company-specific factors weighing on the stock rather than broader market movements.

Market Capitalisation and Sector Context

With a market capitalisation of approximately ₹6,618 crore, Reliance Infrastructure is classified as a small-cap company within the power sector. The sector itself has experienced mixed performance recently, but the stock’s sharp fall and circuit hit stand out as a notable event. Investors are likely assessing the company’s fundamentals alongside sectoral trends, which may be contributing to the cautious stance.

Investor Sentiment and Potential Implications

The activation of the lower circuit limit often signals panic selling or a sudden surge in supply that overwhelms demand. In the case of Reliance Infrastructure, the unfilled supply and heavy volume near the day’s low suggest that sellers are eager to exit positions amid uncertainty. The decline in delivery volumes further supports the view that investors are not committing to long-term holdings at current price levels.

Such market behaviour can lead to increased volatility in the near term, with potential for further downside if selling pressure persists. However, it may also attract bargain hunters or value investors who perceive the stock as oversold relative to its intrinsic worth.

Outlook and Considerations for Investors

Investors monitoring Reliance Infrastructure should consider the stock’s recent price action in the context of its broader financial health and sector dynamics. The persistent downtrend and circuit hit highlight significant selling interest, which may be driven by concerns over earnings, project execution, or regulatory factors affecting the power industry.

Given the stock’s position below all major moving averages and the decline in investor participation, caution 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.

Meanwhile, the broader market’s relative stability suggests that the stock’s weakness is largely company-specific, underscoring the importance of analysing Reliance Infrastructure’s fundamentals and news flow closely.

Summary

Reliance Infrastructure’s fall to its lower circuit limit on 24 Nov 2025 reflects a day marked by heavy selling pressure, unfilled supply, and a sharp intraday decline to a new 52-week low. The stock’s underperformance relative to its sector and the broader market, combined with declining delivery volumes and trading below all key moving averages, signals a challenging environment for the company’s shares. Investors should remain vigilant and consider both technical and fundamental factors before making decisions regarding this power sector stock.

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