Reliance Power shares hit upper circuit for 8th session; triggers for the rally, price targets, technicals and more 

Reliance Power share price today: Shares of Reliance Power hit upper circuit for the eighth straight session on Friday amid flat movement in the benchmark indices. Reliance Power stock rose 5% to Rs 46.36 in early deals against the previous close of Rs 44.16 on BSE. The stock is trading in the green for the last 12 sessions. Market cap of the firm climbed to Rs 18,622 crore. Total 29.93 lakh shares of the firm changed hands amounting to a turnover of Rs 13.87 crore on BSE.

Reliance Power shares have a beta of 0.9, indicating very low volatility in a year. The stock is trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

Reliance Power's relative strength index (RSI) stands at 83.1, which signals the stock is trading in the overbought zone. 

The stock has been rallying since September 9 due to various triggers. 

Here are the details of the developments, which led to a rally in the stock. 

On September 16, Reliance Power stock hit the upper circuit of 5% after the firm won a large order in the renewable energy sector. The company said it secured a major Battery Storage Contract of 500 MW/1000 MWh from the Solar Energy Corporation of India (SECI). The contract positions Reliance Power as a key player in one of the world’s largest standalone battery energy storage projects.

On September 18, sentiments around the stock received another boost after the Anil Ambani led firm said it has been released and discharged of its corporate guarantee, undertakings and all obligations and claims in relation to the outstanding debt of subsidiary Vidarbha Industries Power Limited (VIPL), amounting to Rs 3,872.04 crore. 

The company said it settled all disputes with CFM Asset Reconstruction Private Limited (CFM), as 100 per cent shares of VIPL have been pledged in favour of CFM against the release and discharge of corporate guarantee given by Reliance Power.

The stock hit upper circuit of 5% in the same trading session.

On September 19, Shares of Reliance Power climbed 5 per cent as the board of directors of Reliance Power were scheduled to meet on September 23 to consider and approve raising of long term resources from domestic and/or global markets. 

On Sept 23, the Anil Ambani-led company announced a preferential issue of 46.2 crore equity shares worth Rs 1,524.60 crore at a price of Rs 33 per share, which was at a 14 per cent discount to Monday's closing price for the stock. The issue was proposed to be made to promoter Reliance Infrastructure Ltd and non-promoter entities Authum Investment and Infrastructure Ltd and Sanatan Financial Advisory Services Private Ltd (Sanjay Kothari and Meenakshi Sanjay Kothari.) 

Analysts were largely bullish on the prospects of the stock. 

Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking believes that Reliance Power has the potential to hit an upside target of Rs 50 in the near term. One can set up stop loss at Rs 40 on on the counter. 

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi finds support at Rs 42 and resistance at Rs 45. A decisive close above Rs 45 level may trigger a further upside towards Rs 48, said Patel adding that the stock is expected to move in a range of Rs 40 and Rs 48 for the short term. 

Sebi-registered research analyst AR Ramachandran has advised investors to book profit. 

"Reliance Power stock price is bullish but overbought on daily charts with next resistance at Rs 48. Investors should book profits at current levels as a daily close below support of Rs 39 could lead to a downward target of Rs 33 in the near term," he said.