RPower shares soar 28% in 5 sessions to hit fresh 52-week high; co clarifies on Adani Power report

Reliance Power Ltd shares extended their strong upmove for the fifth straight session in Thursday's trade. The stock climbed another 5 per cent to hit a fresh one-year high of Rs 37.97. At this price, it has gained 27.55 per cent in five trading days.

The counter has been buzzing after it was reported that Adani Power had begun talks to acquire a thermal power project in Nagpur once owned by Anil-Ambani's bankrupt Reliance Power. RPower, however, clarified that it won't comment on media speculations.

"We would like to clarify that we are unable to comment on media speculations and it would be inappropriate on our part to do so. The company continuously assesses different opportunities to settle its liabilities and is unable to provide any comment on movement in price in the stock markets," it stated in a BSE filing.

Appropriate disclosures will be made in accordance with applicable regulations, as and when any disclosable event occurs, the company added.

Analysts largely remained positive on RPower's stock for the near term. Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said, "The counter has been buzzing after a recent news report claimed that Adani Power was in talks to buy Reliance Power's 600 MW thermal plant in Nagpur. It is one of the momentum stocks right now."

Market participants with a high-risk appetite can hold on to the stock. Fresh buying is not advised at current levels, Bathini mentioned.

On the technical front, near-term support on the counter could be seen at Rs 32 level. And, resistance may be found in the Rs 38 range.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "Currently, the counter is placed at a crucial juncture of a multi-week breakout and a sustainable follow-up buying emergence is likely to trigger the next round of rally in the counter for the Rs 42-45 zone in the comparable period. On the lower end, a series of support zones are placed near the Rs 32-30 sub-zone."

Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said the stock will face some resistance at Rs 38 level over the near term.

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, also suggested that immediate resistance on the counter will be at Rs 38. The expected trading range will be between Rs 40 and Rs 30 for the short term, Patel added.

The company said its consolidated net loss narrowed to Rs 97.85 crore during the June 2024 quarter (Q1 FY25), on account of improved income. It had reported a loss of Rs 296.31 crore in the April-June period of the preceding 2023-24 financial year. It increased its total income to Rs 2,069.18 crore from Rs 1,951.23 crore in the year-ago period.

As of June 2024, promoters held a 23.24 per cent stake in the firm.