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

Market Performance and Price Action

The stock opened with a gap down of 5%, reflecting immediate bearish sentiment among investors. Despite touching an intraday high of ₹1673.9, representing a 2.82% gain from the previous close, SABTN was unable to sustain any upward momentum. The price swiftly reversed, hitting an intraday low and closing at ₹1546.6, exactly at the lower circuit price band of 5% loss for the day.

This marked a maximum daily loss of ₹81.4 per share, underscoring the severity of the sell-off. The weighted average price for the day was closer to the low price, indicating that the bulk of trading volume occurred near the bottom end of the price range. The stock exhibited high intraday volatility of 6.65%, a clear sign of unsettled investor sentiment and rapid price swings.

Volume and Liquidity Dynamics

Trading volumes were relatively muted, with total traded volume recorded at 0.17302 lakh shares and turnover amounting to ₹2.71 crore. Notably, delivery volumes fell sharply by 75.49% compared to the five-day average, signalling a decline in genuine investor participation and a rise in panic selling or short-term speculative trades.

Despite the fall in delivery volumes, liquidity remained adequate for moderate trade sizes, with the stock’s liquidity rating allowing for trades up to ₹0.02 crore without significant market impact. However, the sharp drop in delivery volumes suggests that long-term holders are either exiting positions or refraining from fresh commitments amid the ongoing downtrend.

Technical and Trend Analysis

From a technical standpoint, SABTN’s price remains above its 100-day and 200-day moving averages, which could provide some long-term support. However, the stock is trading below its 5-day, 20-day, and 50-day moving averages, indicating a weakening short- to medium-term trend. The six-day consecutive fall has resulted in a cumulative loss of 22.67%, a significant correction that has eroded investor confidence.

The stock’s underperformance is also evident when compared to its sector and the Sensex. While SABTN declined by 5.00% on the day, the Media & Entertainment sector fell by only 1.16%, and the Sensex was nearly flat with a marginal loss of 0.13%. This relative weakness highlights company-specific concerns or negative sentiment that is not affecting the broader market to the same extent.

Fundamental and Market Sentiment Overview

Sri Adhikari Brothers Television Network Ltd operates within the Media & Entertainment sector and is classified as a small-cap company with a market capitalisation of approximately ₹4,177 crore. Despite its established presence, the company’s Mojo Score currently stands at 37.0, with a Mojo Grade of Sell, downgraded from a Strong Sell on 4 Sep 2025. This downgrade reflects deteriorating fundamentals or weakening market sentiment as assessed by MarketsMOJO’s comprehensive evaluation framework.

The downgrade and current rating suggest that the stock is facing structural challenges or valuation concerns that have not been adequately addressed by recent corporate actions or market developments. Investors should be cautious, as the combination of technical weakness and fundamental downgrade often precedes further downside risk.

Investor Behaviour and Panic Selling

The sharp decline and lower circuit hit are indicative of panic selling, where investors rush to exit positions amid fears of deeper losses. The unfilled supply of shares at lower price levels suggests that sellers are overwhelming buyers, pushing the stock to its maximum permissible daily fall. This scenario often leads to a temporary freeze in trading, as the lower circuit prevents further price declines for the day, giving the market a chance to stabilise.

However, the persistent six-day losing streak and the sizeable cumulative decline of over 22% imply that the negative sentiment is entrenched. Without fresh positive triggers or fundamental improvements, the stock may continue to face selling pressure in the near term.

Outlook and Investor Considerations

Given the current market dynamics, investors should approach SABTN with caution. The stock’s technical indicators point to a bearish trend, while the fundamental downgrade and low Mojo Score reinforce the negative outlook. The high volatility and reduced delivery volumes further complicate the risk profile, suggesting that only risk-tolerant investors with a long-term horizon might consider accumulating at these levels.

For those holding positions, it may be prudent to reassess exposure and consider risk management strategies, especially in light of the stock’s underperformance relative to its sector and the broader market. Monitoring upcoming corporate announcements, sector developments, and broader market trends will be essential to gauge any potential turnaround.

Comparative Sector and Market Context

While SABTN struggles, the Media & Entertainment sector has shown relative resilience, with a one-day return of -1.16% compared to SABTN’s -5.00%. The broader Sensex index remained largely stable, declining marginally by 0.13%. This divergence highlights company-specific challenges rather than sector-wide issues.

Investors looking for exposure to the sector may find better risk-adjusted opportunities elsewhere, especially given SABTN’s current Sell rating and deteriorating technical setup. The stock’s small-cap status adds an additional layer of volatility and risk, which must be factored into portfolio decisions.

Summary

Sri Adhikari Brothers Television Network Ltd’s plunge to the lower circuit on 19 Feb 2026 underscores the intense selling pressure and negative sentiment surrounding the stock. With a six-day losing streak, a 22.67% cumulative decline, and a downgrade to a Sell rating, the stock faces significant headwinds. Investors should remain cautious, monitor market developments closely, and consider alternative investments within the sector or broader market.

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