Intraday Price Movement and Circuit Breaker Trigger
Reliance Infrastructure’s stock, trading under the BE series, witnessed a maximum intraday fall of 4.87%, touching a low of ₹98.62 before settling near the lower circuit price band of ₹99.25. The stock’s price band for the day was ₹5, with the high price recorded at ₹104.00. The lower circuit hit indicates that the stock’s price decline reached the maximum permissible limit for the day, triggering automatic trading halts to curb further freefall.
Heavy Selling and Volume Analysis
The session saw a total traded volume of approximately 6.08 lakh shares, translating to a turnover of ₹6.09 crore. Notably, the weighted average price was closer to the day’s low, signalling that the bulk of trading activity occurred near the bottom end of the price range. This pattern is indicative of persistent selling interest and a lack of buying support at higher levels.
Investor participation has also shown signs of deterioration. Delivery volumes on 20 Feb 2026 stood at 95,690 shares, marking a sharp decline of 48.14% compared to the five-day average delivery volume. This drop suggests waning confidence among long-term holders, with many opting to exit positions amid the ongoing downtrend.
Technical Indicators and Moving Averages
From a technical standpoint, Reliance Infrastructure is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — underscoring a bearish momentum. The stock’s consistent underperformance relative to its sector and benchmark indices further compounds the negative outlook. On the day, the stock underperformed the power sector by 4.96%, while the Sensex and sector indices posted modest gains of 0.43% and 0.42%, respectively.
Recent Performance and Market Capitalisation
Reliance Infrastructure has been on a downward trajectory for three consecutive sessions, accumulating a loss of 9.12% over this period. The company’s market capitalisation currently stands at ₹4,135 crore, categorising it as a small-cap stock within the power sector. This classification often entails higher volatility and sensitivity to market sentiment, which is evident in the recent price action.
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Mojo Score and Analyst Ratings
MarketsMOJO assigns Reliance Infrastructure a Mojo Score of 26.0, reflecting a Strong Sell rating as of 5 Feb 2026, an upgrade in negativity from the previous Sell grade. This downgrade signals deteriorating fundamentals and weak technicals, cautioning investors against holding or accumulating the stock at current levels. The company’s market cap grade is 3, indicating a relatively modest size and liquidity profile within its sector.
Liquidity and Trading Considerations
Despite the recent sell-off, the stock remains sufficiently liquid for moderate trade sizes. Based on 2% of the five-day average traded value, the stock can accommodate trades worth approximately ₹0.37 crore without significant market impact. However, the falling delivery volumes and persistent price weakness suggest that liquidity may tighten if selling intensifies further.
Sectoral Context and Comparative Performance
The power sector has generally maintained stability, with sectoral indices showing modest gains on the day. Reliance Infrastructure’s sharp underperformance relative to its peers highlights company-specific challenges, possibly stemming from operational concerns, financial stress, or broader market sentiment shifts. Investors should weigh these factors carefully against sectoral trends before making allocation decisions.
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Investor Sentiment and Outlook
The lower circuit hit and sustained selling pressure reflect a pronounced negative sentiment among investors. Panic selling appears to have dominated trading, with unfilled supply exerting downward pressure on prices. The absence of significant buying interest near the lower price band suggests that market participants remain cautious, awaiting clearer signs of recovery or fundamental improvement.
Given the stock’s current technical weakness, poor relative performance, and negative analyst outlook, investors are advised to exercise prudence. Those holding positions may consider risk mitigation strategies, while prospective buyers should await confirmation of a stabilisation or turnaround before committing capital.
Conclusion
Reliance Infrastructure Ltd’s plunge to the lower circuit limit on 23 Feb 2026 underscores the challenges facing the company amid a volatile market environment. Heavy selling pressure, declining delivery volumes, and a deteriorating technical setup have combined to create a bearish scenario. While the power sector remains relatively stable, Reliance Infrastructure’s underperformance and strong sell rating from MarketsMOJO highlight the need for cautious evaluation by investors.
Market participants should monitor upcoming corporate developments, sectoral trends, and broader market cues to gauge potential recovery triggers. Until then, the stock’s risk profile remains elevated, with limited upside visibility in the near term.
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