In Thursday's trading, Reliance Power shares extended their advances for the sixth consecutive session. The stock increased 20% to a new one-year high of Rs 31.15. The stock has gained 39.31% in five trading days at this pricing. Today, the stock saw strong trading volumes, with about 10.22 crore changing hands on the BSE. The volume was much higher than the two-week average volume of 2.46 crore shares. The counter's turnover was Rs 295.19 crore, with a market capitalisation (m-cap) of Rs 11,807.04 crore. There were 3,40,36,169 buy orders vs 2,75,222 sell orders.
According to technical analysts, the stock appeared 'strong' on daily charts. The counter may find support near Rs 25. On the plus side, a breakout over Rs 32 is required for the stock to continue to rise.
"Reliance Power has been hovering in a cycle of higher highs - higher lows and recently has gained strong traction," stated Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One. Because the 21-DEMA has been giving adequate cushioning to the counter, any short-term dip towards the Rs 24-23-subzone should bode positively for buyers. On the plus side, the stock appears set to continue its upward trend."
"The stock has indicated a significant spurt," Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said. It has the potential to extend its bullish trend in the coming days. The key support zone would be at Rs 25, with the next targets predicted to be Rs 35 and Rs 43, respectively. Only a dramatic break below Rs 23 will be enough to undercut the bias."
"Support will be at Rs 25 and resistance at Rs 32," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers. A decisive close above Rs 32 level may trigger a further upside till Rs 35. For a month, the expected trading range is between Rs 20 and Rs 35."
"Reliance Power looks bullish but also overbought on daily charts," said AR Ramachandran of Tips2trades, "and a close above resistance of Rs 28.65 could lead to a target of Rs 32 in the near term." The support level will be Rs 25.6."
"Reliance Power overcome its multi-year resistance and closed above the Rs 27 threshold, embarking on a new upward trajectory," stated Laxmikant Shukla, Technical Research Analyst at YES Securities. In the short run, a break over Rs 30 might take the stock to Rs 40-44 or higher. On the downside, Rs 23 is recognised as a significant support level, which is projected to provide strong protection during any corrective swings."
"The stock may hit Rs 35 in the near term," said DRS Finvest founder Ravi Singh. Maintain a rigorous stop loss of Rs 24."
Reliance Power, originally Reliance Energy Generation Ltd, is a subsidiary of the Anil Dhirubhai Ambani Group. Promoters owned 24.49 percent of the company as of September 2023.
Last year, it was reported that two listed Anil Ambani group companies, Reliance Power and Reliance Infrastructure Ltd, were involved in a process to raise over Rs 1,000 crore through preferential share issuance from Reliance Commercial Finance, a wholly-owned subsidiary of Authum Investment & Infrastructure. RPower granted Reliance Commercial 7,59,77,000 equity shares at Rs 20 each in exchange for this.
Authum bought Reliance Commercial, a former Anil Ambani company, through a debt resolution process. Authum Investment is an NBFC (non-banking financial firm).
