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 opened near its previous close but soon succumbed to heavy selling, touching an intraday low of Rs.149.16. This level represents the stock’s new 52-week low, underscoring the extent of bearish sentiment prevailing in the market. The stock ultimately settled at Rs.151.00, down 3.83% from the previous day’s close, triggering the lower circuit price band of Rs.5.00. This circuit breaker mechanism halted further declines, reflecting the maximum permissible daily loss under current exchange regulations.

Volume and Turnover Indicate Elevated Trading Activity

Trading volumes surged significantly, with total traded volume reaching approximately 12.02 lakh shares. The turnover for the day stood at ₹18.12 crore, signalling robust liquidity despite the downward price movement. Notably, the weighted average price of traded shares was closer to the day’s low, indicating that the bulk of transactions occurred near the lower price levels. This pattern suggests persistent selling interest and limited buying support at higher price points.

Technical Indicators and Moving Averages

Reliance Infrastructure’s share price currently trades 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 downtrend and weak market sentiment. The stock has recorded losses for six consecutive trading sessions, cumulatively falling by nearly 19.9% during this period. Such a prolonged decline emphasises the challenges faced by the company’s shares in regaining investor confidence.

Sector and Market Context

Within the power sector, Reliance Infrastructure’s performance on the day notably underperformed its peers. The sector recorded a marginal positive return of 0.03%, while the broader Sensex index advanced by 0.06%. This divergence highlights the stock’s relative weakness compared to the overall market and sectoral benchmarks. The company’s market capitalisation stands at approximately ₹6,444 crore, categorising it as a small-cap entity within the power industry.

Investor Participation and Delivery Volumes

Investor engagement has shown signs of rising, with delivery volumes on 24 Nov reaching 1.71 lakh shares. This figure represents a 1.6% increase compared to the five-day average delivery volume, indicating heightened interest in the stock despite its recent downtrend. However, the increased participation has coincided with persistent selling pressure, suggesting that a significant portion of investors may be offloading shares amid concerns over the company’s near-term prospects.

Liquidity and Trade Size Considerations

Reliance Infrastructure’s liquidity remains adequate for trading, with the stock’s average traded value over five days supporting trade sizes up to ₹0.69 crore without significant market impact. This level of liquidity is important for institutional and retail investors seeking to enter or exit positions, although the current market environment characterised by unfilled supply and panic selling may complicate execution at desired price levels.

Implications of the Lower Circuit Hit

The activation of the lower circuit limit for Reliance Infrastructure signals a significant imbalance between supply and demand, with sellers overwhelming buyers. Such a scenario often reflects panic selling or a rush to exit positions amid negative news flow or market sentiment. The unfilled supply at lower price levels indicates that buyers have not stepped in sufficiently to absorb the selling pressure, resulting in the stock being unable to trade below the circuit threshold.

Historical Performance and Outlook

Over the past six trading sessions, Reliance Infrastructure’s stock has experienced a steady decline, cumulatively shedding close to 20% of its value. This trend contrasts with the broader market’s modest gains during the same timeframe, underscoring company-specific challenges or sectoral headwinds impacting investor sentiment. The stock’s position below all major moving averages further reinforces the technical weakness and suggests that a recovery may require a shift in market dynamics or positive catalysts.

Conclusion

Reliance Infrastructure’s lower circuit hit on 25 Nov 2025 reflects a day of intense selling pressure and market caution. The stock’s new 52-week low, combined with elevated volumes and unfilled supply, paints a picture of a security under stress. While liquidity remains sufficient for trading, the prevailing downtrend and technical indicators suggest that investors should closely monitor developments before considering fresh exposure. The divergence from sector and market performance further emphasises the need for careful analysis of the company’s fundamentals and market environment.

Get 2 full years of MojoOne Premium for only Rs. 12,999. Subscribe for 1 year and we'll add another year FREE. Offer valid for a limited time. Start Saving Now →