Reliance Power shares up 198% in a year; what's next for this counter on tech charts?

Shares of Reliance Power Ltd were last seen trading 1.52 per cent higher at Rs 28 on Wednesday. At this price, the multibagger scrip has gained 197.87 per cent in the past one year. RPower, in an exchange filing today, said, "We wish to inform that the subsidiaries of the company, namely Kalai Power Pvt Ltd and Reliance Cleangen Ltd, for the purpose of debt settlement has signed a debt settlement and discharge agreement with the wholly-owned subsidiary of Authum Investment and Infrastructure Ltd - RCFL on March 26, 2024, in settlement of the entire obligations with respect to their outstanding consolidated debt of Rs 1,023 crore."

"The wholly-owned subsidiary of Authum Investment and Infrastructure Limited - RCFL holds 7,59,77,000 equity shares in the company. Further, it is neither the related party nor part of the promoter group," it added.

Technical analysts remained divided on the counter. "The stock may slip towards Rs 22 level in the near term," said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.

"Reliance Power looks slightly bullish on daily charts with strong support at Rs 26.3. A daily close above resistance of Rs 29 could lead to an upside target of Rs 34.4 in the near term," said AR Ramachandran from Tips2trades.

"Support will be at Rs 26.35 and resistance at Rs 28.50. A decisive close above Rs 28.50 level may trigger a further upside till Rs 32.65. Expected trading range will be between Rs 25 and Rs 32.65 for a month," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.

The counter traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 66.34. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company, part of the Anil Dhirubhai Ambani Group, has been settling its debt with its lenders. In the last three months, it has settled its dues to three banks, DBS Bank, ICICI Bank, and Axis Bank.