Reliance Power shares up 69% in six months; analysts divided on stock

Shares of Reliance Power Ltd fell in Wednesday's trade, pausing their two-day sharp upward run. The stock was last seen trading 2.03 per cent lower at Rs 20.28. At this price, the scrip has gained 68.86 per cent in the last six months and 37.87 per cent on a year-to-date (YTD) basis. On BSE, around 2.42 crore shares changed hands today at the time of writing this story. The figure was higher than the two-week average volume of 1.79 crore shares. Turnover on the counter stood at Rs 49.65 crore, commanding a market capitalisation (m-cap) of Rs 7,736.70 crore. There were 55,39,233 sell orders as against buy orders of 16,50,203 shares.

Technical analysts largely remained divided on the counter. One of them said that the stock may see higher levels in the near term while another suggested booking profits at current levels. Support could be seen at Rs 19, followed by Rs 18 and Rs 17 levels.

"Reliance Power's share price is making rounding base pattern. One can keep a stop loss of Rs 17. On the higher side, Rs 24-28 levels could be achievable in a couple of weeks," Mileen Vasudeo, Senior Technical Research Analyst at Arihant Capital Markets, told BT TV.

"The stock is bearish and also overbought on daily charts with next resistance at Rs 20.95. Investors should be booking profits at current levels as a daily close below support of Rs 19.35 could lead to a downside target of Rs 16 in the near term," said AR Ramachandran from Tips2trades said.

"RPower may see Rs 22 levels in the near term. Keep stop loss placed at Rs 19," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.

"Traders should keep a strict stop loss at Rs 18. And, expected target price would be Rs 24," said DRS Finvest founder Ravi Singh.

The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150- and 200-day simple moving averages (SMAs). The scrip's 14-day relative strength index (RSI) came at 65.34. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 10.07 against a price-to-book (P/B) value of 0.88.

The scrip has a one-year beta of 1.64, indicating high volatility.

As of September 2023, promoters held 24.49 per cent stake in the company.

(Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)

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