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

Intraday Price Action and Volatility

The stock opened sharply lower, down 3.92% from its previous close, signalling immediate bearish sentiment among investors. Despite touching an intraday high of ₹1,919.9, representing a 4.99% gain from the open, the price swiftly reversed to hit the lower circuit at ₹1,737.2, a 5.0% drop from the previous close. This wide intraday range of ₹182.7 highlighted significant volatility, with the weighted average price indicating that most volume traded closer to the day’s low, underscoring the dominance of sellers throughout the session.

Volume and Liquidity Dynamics

Trading volumes were moderate, with a total of 0.31094 lakh shares exchanging hands, generating a turnover of ₹5.66 crore. Delivery volumes, a key indicator of genuine investor interest, declined by 2.25% compared to the five-day average, falling to 4.7 thousand shares on 28 Jan. This drop in delivery volume suggests that short-term traders and speculators were more active than long-term holders, who appeared to be retreating amid the ongoing price weakness.

Technical and Moving Average Analysis

From a technical standpoint, SABTN’s last traded price remains above its 50-day, 100-day, and 200-day moving averages, indicating that the longer-term trend has not yet turned decisively negative. However, the stock is trading below its 5-day and 20-day moving averages, signalling short-term bearish momentum. This divergence often reflects a tussle between longer-term investors holding steady and short-term traders reacting to recent negative developments.

Sector and Market Context

Within the Media & Entertainment sector, SABTN underperformed its peers, with a sector return of -2.05% compared to the stock’s -5.0% loss on the day. The broader Sensex index was relatively stable, declining only 0.27%, highlighting that SABTN’s sharp fall was largely stock-specific rather than a reflection of broader market weakness. This underperformance relative to both sector and market benchmarks emphasises the severity of selling pressure on SABTN.

Investor Sentiment and Market Cap Considerations

Investor sentiment towards SABTN remains cautious, reflected in its Mojo Score of 44.0 and a Mojo Grade of Sell, downgraded from Strong Sell on 4 Sep 2025. The company’s market capitalisation stands at ₹4,888 crore, categorising it as a small-cap stock within the Media & Entertainment sector. This classification often entails higher volatility and susceptibility to market swings, which is evident in the recent price action.

Supply-Demand Imbalance and Circuit Breaker Impact

The stock’s fall to the lower circuit limit indicates a severe imbalance between supply and demand, with sellers overwhelming buyers to the extent that trading was halted to prevent further freefall. Such circuit limits are designed to curb panic selling and provide a cooling-off period for the market. However, the unfilled supply at the lower circuit suggests that selling pressure remains unabated, and investors are reluctant to step in at current price levels.

Recent Price Trend and Consecutive Declines

SABTN has been on a downward trajectory for four consecutive trading sessions, cumulatively losing 18.41% of its value. This sustained decline reflects growing concerns among investors, possibly linked to sectoral headwinds, company-specific news, or broader market sentiment shifts. The persistent fall has eroded confidence, prompting further liquidation of holdings and exacerbating the stock’s volatility.

Outlook and Investor Considerations

Given the current technical setup and market dynamics, investors should approach SABTN with caution. The stock’s failure to hold above short-term moving averages and the persistent selling pressure suggest that further downside risk remains in the near term. However, the fact that the price is still above longer-term moving averages may offer some support, indicating that a recovery could be possible if positive catalysts emerge.

Investors are advised to monitor volume trends closely, as a sustained increase in delivery volumes could signal renewed buying interest. Additionally, keeping an eye on sectoral developments and company-specific announcements will be crucial to gauge any shifts in sentiment. For those holding positions, setting appropriate stop-loss levels and considering portfolio diversification may help mitigate risk.

Conclusion

Sri Adhikari Brothers Television Network Ltd’s plunge to the lower circuit limit on 29 Jan 2026 underscores the intense selling pressure and investor anxiety surrounding the stock. The combination of a wide intraday price range, declining delivery volumes, and underperformance relative to sector and market benchmarks paints a challenging picture for the near term. While longer-term technical indicators provide some cushion, the immediate outlook remains bearish until clear signs of demand absorption and sentiment improvement materialise.

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