Shares of Reliance Power Ltd extended their upward move for the seventh consecutive session in Monday's trade. The stock surged 5.38 per cent to hit a one-year high of Rs 33.10. At this price, the scrip has gained 48.03 per cent in seven trading days. And, it has given multibagger return by rallying 265.75 per cent from its 52-week low price of Rs 9.05, a level seen on March 28 last year when it turned into a penny stock.
Bourses BSE and NSE have put the securities of RPower under the short-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.
The company has recently signed an agreement with DBS Bank India for settlement of the entire obligations with respect to its borrowings. "Till the time the loans are settled in terms of this agreement, no legal proceedings shall be initiated in this connection. DBS does not hold any share in the company and is neither a related party nor part of the promoter group," it stated.
Prior to this, RPower saw a couple of bulk deals last week, BSE data showed. An entity named Hrti Pvt Ltd bought 1.95 crore shares at an average price of Rs 28.76 and sold around 1.86 crore shares at an average rate of Rs 28.64.
On technical setup, major support on the counter could be seen at Rs 25. On the higher side, a decisive close above the Rs 35 zone is required for a further upward move towards Rs 40 levels. That said, one of the analysts said traders should book profits at current levels.
Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "The stock has moved into a fresh territory with a decent spurt witnessed in the last 2-3 sessions. With major support maintained at Rs 25, next targets expected are between Rs 35 and Rs 43 levels. With the bias maintained strong, the overall sentiment has changed and we can expect further gains in the coming days."
Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 28 and resistance at Rs 35. A decisive close above Rs 35 level may trigger a further upside till 40. Expected trading range will be between Rs 28 and Rs 40 for a month."
AR Ramachandran from Tips2trades said, "Reliance Power is bullish but also very overbought on daily charts with next resistance at Rs 36.9. Investors should book profits at current levels as a daily close below support of Rs 30 could lead to Rs 25.9 in the near term."
Laxmikant Shukla, Technical Research Analyst at YES Securities, suggested the stock may see Rs 40-44 levels in the near term.
DRS Finvest founder Ravi Singh said, "The stock may hit Rs 35 in the near term. Keep strict stop loss placed at Rs 25."
RPower, formerly known as Reliance Energy Generation Ltd, is a part of the Reliance Anil Dhirubhai Ambani Group. As of September 2023, promoters held 24.49 per cent stake in the company.
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 from Reliance Commercial Finance, a wholly-owned subsidiary of Authum Investment & Infrastructure, by preferential shares issuance. For this, RPower allotted 7,59,77,000 equity shares to Reliance Commercial for Rs 20 apiece.
Reliance Commercial, an erstwhile Anil Ambani company, was acquired by Authum through a debt resolution process. Authum Investment is a non-banking financial company (NBFC).
(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)
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