Sri Adhikari Brothers Television Network Ltd Hits Lower Circuit Amid Heavy Selling Pressure

Market Performance and Price Action

The stock opened sharply lower with a gap down of 3.01%, setting the tone for a turbulent trading session. It touched an intraday low of ₹1,924.7, which also became the closing price, representing a 5.0% drop from the previous close. This decline was notably steeper than the sector’s fall of 3.72% and contrasted with the broader Sensex’s modest gain of 0.37% on the same day.

Trading volumes were relatively subdued, with total traded volume at 0.09132 lakh shares and a turnover of ₹1.76 crore. The weighted average price hovered closer to the day’s low, indicating that most trades occurred near the bottom end of the price band, a classic sign of sustained selling pressure. Despite the stock’s price being above its 20-day, 50-day, 100-day, and 200-day moving averages, it remained below the 5-day moving average, highlighting short-term bearish momentum.

Investor Sentiment and Delivery Volumes

Investor participation appeared to be waning, with delivery volumes dropping to 3,100 shares on 23 Jan, a decline of 31.1% compared to the five-day average. This reduction in delivery volume suggests that long-term holders may be retreating, while short-term traders possibly accelerated selling amid the negative price action. The stock has now recorded losses for two consecutive sessions, cumulatively falling by 9.6% over this period, underscoring growing investor unease.

Company and Sector Context

Sri Adhikari Brothers Television Network Ltd operates within the Media & Entertainment industry, a sector that has been under pressure recently. The company’s market capitalisation stands at ₹5,154 crore, categorising it as a small-cap stock. Despite its relatively modest size, the stock’s recent performance has been disappointing, with a Mojo Score of 44.0 and a Mojo Grade of Sell, downgraded from Strong Sell as of 4 Sep 2025. This downgrade reflects a slight improvement in outlook but still signals caution for investors.

Technical Analysis and Price Band Impact

The stock’s fall to the lower circuit limit of 5% is a significant technical event, as it prevents further decline during the trading session. This mechanism is designed to curb panic selling and provide a cooling-off period for investors. However, the fact that Sri Adhikari Brothers Television Network Ltd hit this limit indicates strong bearish sentiment and an imbalance between supply and demand.

Price bands in Indian equity markets restrict daily price movements to a fixed percentage, in this case, 5%. The stock’s closing at ₹1,924.7, exactly at the lower circuit, suggests that sellers were eager to exit positions but buyers were scarce or unwilling to step in at lower prices. This unfilled supply could lead to continued volatility in the near term.

Comparative Sector and Market Performance

While the Media & Entertainment sector declined by 3.72% on the day, Sri Adhikari Brothers underperformed even this weak sector benchmark by 1.33 percentage points. This relative underperformance highlights company-specific concerns or negative sentiment that may not be affecting peers as severely. The broader market, represented by the Sensex, was resilient with a 0.37% gain, further isolating the stock’s weakness.

Liquidity and Trading Considerations

Liquidity remains adequate for the stock, with the ability to handle trade sizes of approximately ₹0.29 crore based on 2% of the five-day average traded value. However, the recent decline in delivery volumes and the sharp price drop may deter some institutional investors from increasing exposure until stability returns. Traders should be cautious given the stock’s recent volatility and the risk of further downside if selling pressure persists.

Outlook and Investor Implications

Given the stock’s recent performance, investors should approach Sri Adhikari Brothers Television Network Ltd with caution. The downgrade from Strong Sell to Sell by MarketsMOJO indicates a marginally less negative outlook but still advises restraint. The persistent selling pressure and circuit hit suggest that negative sentiment remains entrenched, possibly driven by concerns over company fundamentals or sector headwinds.

Investors may wish to monitor upcoming corporate announcements, quarterly results, or sector developments that could influence sentiment. Until then, the risk of further declines or volatility remains elevated. Those holding the stock should consider their risk tolerance and investment horizon carefully, while prospective buyers might wait for signs of price stabilisation before entering.

Summary

Sri Adhikari Brothers Television Network Ltd’s fall to the lower circuit limit on 27 Jan 2026 underscores significant selling pressure and investor anxiety. The 5.0% daily loss, underperformance relative to sector and market indices, and declining delivery volumes paint a picture of a stock under stress. While liquidity remains sufficient, the imbalance between supply and demand has led to unfilled sell orders and panic selling. The current Mojo Grade of Sell reflects cautious sentiment, and investors should remain vigilant amid ongoing volatility.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →