Ujaas Energy Ltd Surges to Upper Circuit Amid Robust Buying Pressure

Strong Buying Pressure Drives Price to Upper Circuit

On 10 Feb 2026, Ujaas Energy Ltd’s shares opened with a gap-up of 5.0%, immediately touching the upper circuit price band of ₹199.86. The stock maintained this price throughout the trading session, with no intra-day price variation, signalling intense buying interest that overwhelmed available supply. The total traded volume was modest at 0.02825 lakh shares, translating to a turnover of ₹0.056 crore, but the delivery volume on the previous day (09 Feb) rose sharply by 33.92% to 21,290 shares compared to the five-day average, indicating rising investor participation and confidence in the stock’s momentum.

The upper circuit hit means the stock reached the maximum permissible daily price increase of 5%, triggering a regulatory freeze on further price movement for the day. This freeze is designed to curb excessive volatility and allows the market to absorb the surge in demand. The unfilled demand at this price level suggests that buyers remain eager to accumulate shares, potentially setting the stage for continued upward momentum in the near term.

Outperformance Against Sector and Benchmark Indices

Ujaas Energy’s performance on 10 Feb 2026 notably outpaced its sector and broader market benchmarks. While the stock gained 5.0%, the power sector index registered a marginal increase of 0.05%, and the Sensex rose by 0.32%. This divergence highlights the stock’s relative strength and investor preference amid a generally subdued sectoral environment. The company’s market capitalisation stands at ₹2,666.09 crore, categorising it as a small-cap stock with significant room for growth compared to larger peers.

Technical indicators further reinforce the bullish sentiment. Ujaas Energy is trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a strong uptrend and positive momentum. The stock’s nine consecutive days of gains have cumulatively delivered a 72.41% return, an exceptional run that has attracted attention from traders and investors alike.

Mojo Score and Analyst Ratings Reflect Caution

Despite the recent price surge, Ujaas Energy’s MarketsMOJO score remains subdued at 31.0, with a Mojo Grade of ‘Sell’. This represents an upgrade from a previous ‘Strong Sell’ rating dated 03 Feb 2026, indicating some improvement in fundamentals or market perception, but still signalling caution for investors. The market cap grade is 3, reflecting its small-cap status and associated risks such as liquidity constraints and volatility.

Investors should weigh the strong technical momentum against the fundamental outlook and analyst recommendations. The power sector, while essential, faces challenges including regulatory changes, fluctuating fuel costs, and evolving energy policies that could impact earnings visibility. The current rally may be driven more by speculative buying and short-term sentiment rather than a fundamental turnaround.

Liquidity and Trading Dynamics

Liquidity remains adequate for Ujaas Energy, with the stock’s traded value supporting trade sizes of approximately ₹0.01 crore based on 2% of the five-day average traded value. This level of liquidity is sufficient for retail and small institutional investors but may pose challenges for larger trades without impacting price. The limited volume on the day of the upper circuit hit suggests that supply is constrained, which, combined with rising delivery volumes, points to genuine accumulation rather than transient speculative spikes.

The stock’s price action, characterised by a gap-up open and no intra-day price range, is typical of upper circuit scenarios where demand outstrips supply and trading is halted at the maximum permissible price. Such moves often attract momentum traders and can trigger short covering, further amplifying gains in the short term.

Outlook and Investor Considerations

Ujaas Energy’s recent price action is a clear indication of strong market interest and positive sentiment. However, investors should remain vigilant given the stock’s small-cap nature and the inherent volatility in the power sector. The upper circuit hit and unfilled demand suggest that the stock could continue its upward trajectory in the short term, but profit-taking and price corrections are also plausible once the regulatory freeze lifts and supply catches up with demand.

Fundamental investors should monitor upcoming quarterly results, sectoral policy developments, and any changes in the company’s operational performance. The current Mojo Grade of ‘Sell’ advises caution, and a thorough analysis of financial metrics and competitive positioning is recommended before committing fresh capital.

In summary, Ujaas Energy Ltd’s upper circuit hit on 10 Feb 2026 highlights a compelling short-term momentum story fuelled by strong buying pressure and rising investor participation. While the technical indicators are bullish, the fundamental outlook and analyst ratings counsel prudence. Investors seeking exposure to the power sector’s growth potential may consider this stock as part of a diversified portfolio but should be mindful of the risks associated with small-cap volatility and sector-specific challenges.

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