Tejas Networks Ltd Plunges to Lower Circuit Amid Heavy Selling Pressure

Intraday Price Action and Volatility

The stock of Tejas Networks Ltd (EQ series) opened sharply lower by 2.6% and continued to slide throughout the trading session, touching an intraday low of ₹418.55, marking a near 10% drop from the previous close. The last traded price settled at ₹418.75, firmly at the lower circuit band of ₹46.3 below the previous close, triggering automatic trading halts to curb further losses.

Intraday volatility was notably high at 5.53%, reflecting intense price swings as the weighted average price indicated that the majority of volume traded closer to the day’s low. This pattern underscores the dominance of sellers over buyers throughout the session.

Volume and Liquidity Dynamics

Trading volumes surged to 117.91 lakh shares, generating a turnover of ₹506.56 crore, signalling robust liquidity despite the bearish sentiment. However, delivery volumes have plummeted, with only 26.13 lakh shares delivered on 6 Mar, down 65.8% compared to the five-day average. This sharp decline in delivery participation suggests that investors are increasingly reluctant to hold the stock amid the ongoing downtrend, opting instead for short-term trading or exiting positions entirely.

Despite the heavy selling, the stock remains liquid enough to support trade sizes up to ₹96.97 crore based on 2% of the five-day average traded value, ensuring that institutional and retail investors can still transact sizeable volumes without significant price impact beyond the current volatility.

Technical and Trend Analysis

Tejas Networks Ltd’s price action reveals a concerning technical picture. The stock has been on a consecutive three-day losing streak, shedding 15.62% in total returns during this period. It underperformed its sector, Telecom - Equipment & Accessories, by 2.83% today, while the broader IT - Hardware sector declined by 6.36%. The Sensex, in contrast, fell a modest 2.05%, highlighting the stock’s relative weakness.

Moving averages provide mixed signals: the current price is above the 20-day and 50-day moving averages but remains below the 5-day, 100-day, and 200-day averages. This suggests short-term weakness amid longer-term consolidation or downtrend pressures. The persistent failure to hold above shorter-term averages indicates that bearish momentum is prevailing.

Fundamental and Market Context

Tejas Networks Ltd operates in the Telecom - Equipment & Accessories industry and is classified as a small-cap company with a market capitalisation of ₹7,533.10 crore. Despite its niche positioning, the company’s Mojo Score has deteriorated to 6.0, with a recent downgrade from Sell to Strong Sell on 20 Oct 2025, reflecting growing concerns over its financial health and market prospects.

The stock’s Market Cap Grade stands at 3, indicating moderate size but insufficient to shield it from sectoral headwinds and investor risk aversion. The persistent decline in share price and heavy selling pressure suggest that market participants are factoring in potential challenges ahead, including competitive pressures and uncertain demand in the telecom equipment space.

Investor Sentiment and Panic Selling

The sharp fall and circuit hit are symptomatic of panic selling, where investors rush to exit positions amid fears of further declines. The unfilled supply on the sell side has overwhelmed demand, pushing prices down to the maximum permissible limit for the day. This scenario often triggers stop-loss orders and algorithmic selling, exacerbating downward momentum.

Moreover, the stock’s underperformance relative to its sector and the broader market indicates selective selling pressure, possibly driven by negative news flow or disappointing earnings expectations. The lack of strong buying interest at lower levels further compounds the bearish outlook.

Outlook and Investor Considerations

Given the current technical breakdown and negative sentiment, investors should exercise caution with Tejas Networks Ltd. The strong sell rating and recent downgrade highlight the risks of further downside. While the stock remains liquid, the persistent selling pressure and lack of delivery participation suggest that confidence is low.

Investors may consider waiting for signs of stabilisation or a reversal in trend before re-entering. Monitoring sector performance and broader market cues will be essential, as the telecom equipment industry faces cyclical and structural challenges. Diversification and evaluation of alternative investment opportunities within the sector could be prudent.

In summary, Tejas Networks Ltd’s plunge to the lower circuit on 9 Mar 2026 reflects a culmination of heavy selling, panic-driven exits, and unfilled supply, underscoring the need for careful analysis and risk management in volatile market conditions.

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