Reliance Infrastructure Ltd Hits Upper Circuit Amid Strong Buying Pressure

Intraday Price Action and Volume Surge

On 18 Feb 2026, Reliance Infrastructure Ltd opened with a gap-up of 2.94%, signalling immediate bullish sentiment. The stock touched an intraday high of ₹109.04, exactly at the 5% upper price band limit, before closing at the same level. The price band for the day was ₹5, with the low recorded at ₹105.15, indicating a strong upward momentum throughout the session.

Trading volumes were notably robust, with total traded volume reaching 4.33 lakh shares, translating to a turnover of ₹4.69 crore. This volume represents a substantial increase compared to the stock’s recent averages, underscoring the intensity of buying pressure. Delivery volumes on 17 Feb 2026 stood at 2.65 lakh shares, a remarkable 119.39% rise over the five-day average delivery volume, signalling genuine investor participation rather than speculative intraday trading.

Performance Relative to Sector and Market Benchmarks

Reliance Infrastructure outperformed the Power sector by 5.13% on the day, while the Sensex and sector indices remained largely flat, registering marginal gains of 0.03% and a slight decline of 0.03% respectively. This divergence highlights the stock’s relative strength amid a subdued market environment.

Moreover, the stock has been on a positive trajectory for the past two consecutive trading sessions, delivering a cumulative return of 10.24%. This sustained upward movement suggests a growing investor confidence in the company’s near-term prospects despite its current valuation challenges.

Technical and Fundamental Context

Despite the recent price rally, Reliance Infrastructure continues to trade below its key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — indicating that the stock remains in a longer-term downtrend. This technical backdrop tempers the optimism generated by the upper circuit hit, suggesting that the rally may be driven by short-term factors or speculative interest.

Fundamentally, the company operates within the Power industry and is classified as a small-cap stock with a market capitalisation of approximately ₹4,252 crore. The latest mojo score assigned to Reliance Infrastructure is 26.0, categorised as a 'Strong Sell' as of 5 Feb 2026, reflecting concerns over its financial health, earnings quality, and growth prospects. This downgrade from a previous 'Sell' rating signals deteriorating fundamentals that investors should weigh carefully.

Liquidity and Trading Dynamics

Liquidity remains adequate for Reliance Infrastructure, with the stock’s traded value representing approximately 2% of its five-day average traded value. This liquidity level supports trade sizes up to ₹0.4 crore without significant market impact, making it accessible for institutional and retail investors alike.

The surge in delivery volumes indicates that investors are increasingly holding shares rather than engaging in short-term speculative trades. This shift towards accumulation could be a precursor to more sustained price appreciation if supported by positive fundamental developments.

Regulatory Freeze and Unfilled Demand

The stock’s upper circuit hit triggered a regulatory freeze, temporarily halting further trades at the capped price to prevent excessive volatility. This freeze reflects the unfilled demand for Reliance Infrastructure shares, as buy orders exceeded available supply at ₹109.04. Such a scenario often signals strong market interest and can precede further price advances once trading resumes.

However, investors should remain cautious as upper circuit hits can also attract profit-booking or trigger volatility once the freeze lifts. Monitoring subsequent sessions will be crucial to assess whether the buying momentum sustains or reverses.

Outlook and Investor Considerations

While the recent price action in Reliance Infrastructure Ltd is encouraging, investors must balance the strong buying interest against the company’s fundamental challenges and technical downtrend. The 'Strong Sell' mojo grade and below-average market cap grade (3) highlight ongoing risks related to earnings quality and growth sustainability.

Investors should closely monitor upcoming quarterly results, management commentary, and sector developments to gauge whether the current rally represents a genuine turnaround or a short-lived speculative spike. Additionally, the stock’s performance relative to its moving averages and sector peers will provide further clues on its medium-term trajectory.

Given the stock’s small-cap status and recent volatility, a cautious approach with well-defined risk management is advisable. Diversifying exposure and considering alternative investment opportunities within the power sector or broader market may enhance portfolio resilience.

Summary

Reliance Infrastructure Ltd’s upper circuit hit on 18 Feb 2026 underscores strong investor demand and a notable shift in market sentiment. The stock’s 5% gain and volume surge reflect heightened buying interest amid a flat sector and market backdrop. However, persistent technical weaknesses and a 'Strong Sell' mojo rating caution investors to remain vigilant. The regulatory freeze due to unfilled demand further highlights the stock’s current volatility and potential for continued price swings.

Ultimately, while the recent momentum is promising, a comprehensive analysis of fundamentals and market conditions is essential before committing capital to Reliance Infrastructure Ltd.

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