Reliance Power shares extended their gains for the fifth straight session in Thursday's trade. The stock jumped 20 per cent to hit a fresh one-year high of Rs 31.15. At this price, the stock has gained 39.31 per cent in five trading days. The scrip saw heavy trading volumes today as around 10.22 crore were seen changing hands on BSE. The figure was way more than the two-week average volume of 2.46 crore shares. Turnover on the counter could be seen at Rs 295.19 crore, commanding a market capitalisation (m-cap) of Rs 11,807.04 crore. There were 3,40,36,169 buy orders against sell orders of 2,75,222 shares.
Technical analysts largely suggested that the stock looked 'strong' on daily charts. Support on the counter could be seen at Rs 25. On the higher side, a breakout above Rs 32 is required for a further bounce in the stock.
Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "Reliance Power has been hovering in a cycle of higher highs – higher lows and recently has gained strong traction. The 21-DEMA has been providing decent cushioning to the counter, and hence, any short-term blip towards the Rs 24-23-sub zone should augur well for the buyers. On the higher end, the stock looks poised to continue its upward march."
Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "The stock has indicated a significant spurt.. It can carry on the positive move further in the coming days. The major support zone would be at the Rs 25 zone and the next targets expected from here are Rs 35 and Rs 43 levels, respectively. Only a decisive breach below Rs 23 can weaken the bias."
Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 25 and resistance at Rs 32. A decisive close above Rs 32 level may trigger a further upside till Rs 35. Expected trading range will be between Rs 20 and Rs 35 for a month."
AR Ramachandran from Tips2trades said, "Reliance Power looks bullish but also overbought on daily charts and a close above resistance of Rs 28.65 could lead to target of Rs 32 in the near term. Support will be at Rs 25.6."
Laxmikant Shukla, Technical Research Analyst at YES Securities, said, "Reliance Power overcome its multi-year resistance and closed above the Rs 27 threshold, embarking on a new upward trajectory. A breach above Rs 30 level has the potential to propel the stock to Rs 40-44 or beyond in the near term. Conversely, on the downside, Rs 23 is recognized as a substantial support level, expected to offer robust protection during any corrective moves."
DRS Finvest founder Ravi Singh said, "The stock may hit Rs 35 in the near term. Keep strict stop loss placed at Rs 24."
Reliance Power, 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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