Reliance Infrastructure Ltd Hits Lower Circuit Amid Heavy Selling Pressure

Intraday Price Movement and Volume Analysis

Reliance Infrastructure Ltd (stock code 400868) opened sharply lower at ₹95.99, reflecting a gap down of 3.75% from the previous close. The stock traded within a narrow band of ₹93.97 to ₹97.50, ultimately hitting the lower circuit at ₹93.97, marking a 2.95% decline on the day. The total traded volume was substantial at 11.2 lakh shares, with a turnover of ₹10.64 crore, indicating heavy participation on the sell side.

Notably, the weighted average price was closer to the day’s low, signalling that the bulk of trades occurred near the lower price levels. This pattern underscores the dominance of sellers and the lack of buying interest to support the stock price.

Technical Weakness and Moving Averages

The stock is trading below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – highlighting a sustained downtrend. This technical deterioration has been accompanied by a five-day consecutive fall, during which Reliance Infrastructure has lost nearly 19.9% in value. Such a steep decline over a short period reflects growing bearish sentiment among market participants.

Investor participation has also waned, with delivery volumes on 16 Feb falling by 38.23% compared to the five-day average, suggesting that long-term holders are reducing exposure or exiting positions amid the ongoing sell-off.

Market Context and Sector Comparison

On the same day, the power sector index declined by a modest 0.16%, while the Sensex fell 0.22%. Reliance Infrastructure’s 2.93% drop significantly outpaced these benchmarks, indicating company-specific concerns rather than broad sector weakness. The stock’s market capitalisation stands at ₹4,050 crore, categorising it as a small-cap within the power sector, which may contribute to its higher volatility and susceptibility to sharp price swings.

Fundamental and Rating Overview

Reliance Infrastructure’s Mojo Score currently stands at 26.0, with a Mojo Grade of Strong Sell, reflecting a downgrade from the previous Sell rating on 5 Feb 2026. This downgrade signals a marked deterioration in the company’s financial health, operational performance, or market outlook as assessed by MarketsMOJO’s proprietary analytics.

The company’s market cap grade is 3, indicating a small-cap status with associated liquidity and risk considerations. The downgrade to Strong Sell suggests that investors should exercise caution and consider risk mitigation strategies, especially given the stock’s recent underperformance and technical breakdown.

Investor Sentiment and Panic Selling

The sharp decline and lower circuit hit have triggered panic selling among retail and institutional investors alike. The unfilled supply of shares at lower price levels has exacerbated the downward momentum, as buyers remain hesitant to step in amid uncertainty. This selling pressure is compounded by the stock’s failure to hold above critical support levels, further eroding confidence.

Such episodes often lead to heightened volatility and can attract speculative trading, but the prevailing sentiment remains negative until clear signs of recovery emerge.

Outlook and Strategic Considerations

Given the current technical and fundamental landscape, Reliance Infrastructure Ltd faces significant headwinds. The stock’s persistent weakness below all major moving averages and the recent downgrade to Strong Sell indicate that further downside cannot be ruled out in the near term.

Investors should closely monitor upcoming corporate developments, sectoral trends, and broader market conditions before considering fresh exposure. Risk-averse participants may prefer to reduce holdings or seek alternative opportunities within the power sector or other segments with more favourable momentum and fundamentals.

Conclusion

Reliance Infrastructure Ltd’s plunge to the lower circuit limit on 17 Feb 2026 underscores the mounting challenges facing the company and its stock. Heavy selling pressure, unfilled supply at lower price points, and a deteriorating technical setup have combined to create a bearish environment. The downgrade to a Strong Sell rating by MarketsMOJO further reinforces the cautionary stance investors should adopt.

While the power sector remains a critical component of India’s infrastructure landscape, Reliance Infrastructure’s current trajectory suggests that investors should prioritise risk management and consider alternative investment avenues until a clear turnaround is evident.

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