Shares of Reliance Power Ltd on Thursday extended their winning run for the 15th consecutive session. The stock jumped 5 per cent to hit a fresh 52-week high value of Rs 53.65. At this price, the scrip has gained 81.31 per cent in a month and delivered multibagger returns to investors by rallying 124.01 per cent in 2024 so far.
The Anil Ambani-led Reliance ADA Group has recently partnered with Bhutan's Druk Holding and Investments Ltd to develop major solar and hydropower projects in the neighbouring country. "The partnership between Reliance Group and Druk Holding will focus on green energy generation, specifically solar and hydropower initiatives, while also exploring innovative green technologies. Reliance Group will collaborate with government-owned companies in Bhutan to implement infrastructure projects that support Bhutan's net-zero goals," it stated.
Separately, RPower was supposed to hold a board meeting today (October 3) to consider and approve the raising of long-term resources by issue of equity shares and equity-linked securities or warrants convertible into equity shares. The board meeting outcome is awaited at the time of writing this story.
On the stock-specific front, 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.
Technically, near-term support could be seen at Rs 50, followed by Rs 44 level. Analysts largely suggested investors should consider booking profits at current levels, given RPower's stellar recent run-up. With that being said, one of them said the counter has turned 'positive' and can climb further in the near term.
Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, "The stock has turned positive on daily charts. It can now hit an upside target of Rs 58 in the near term. Keep stop loss placed at Rs 50."
Kushal Gandhi, Technical Analysts at StoxBox, said, "The price movement has exhibited a strong upward momentum, demonstrating significant outperformance in comparison to the Nifty index. Over the last 15 trading sessions, the stock has surged by 84 per cent, leading to a price action that is 44 per cent above its mean. This substantial deviation from the mean indicates an increased likelihood of profit booking. Therefore, it is advisable to refrain from purchasing the stock at its current market price."
Sebi-registered research analyst AR Ramachandran said, "Reliance Power stock price is bullish but also very overbought on daily charts. Investors should book profits at current levels."
Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "The stock has further upside scope for the next targets of Rs 54 and 59 levels in the coming days. The near-term support would be positioned at Rs 44 and some profit booking cannot be ruled out. A decisive breach below the 44 level shall turn the bias a little bit weak and then one can expect a further slide with the next major support lying near Rs 35 level."
RPower said it has a total installed capacity of 5,340 MW, including the 4,000 MW ultra mega power project in Madhya Pradesh, which is currently the largest integrated thermal power plant in the world. It also mentioned that two Reliance ADAG companies, Reliance Infrastructure Ltd and RPower, are nearly debt-free. As of June 2024, promoters held a 23.24 per cent stake in the company.