RPower shares at fresh one-year highs! Multibagger stock rallied 73% in 14 sessions; what's next?

Shares of Reliance Power Ltd on Tuesday continued their winning run for the 14th straight session. The stock jumped 5 per cent to hit a new 52-week high value of Rs 51.10. At this price, the scrip has gained 61.69 per cent in a month and delivered multibagger returns to investors by rallying 113.36 per cent in 2024 so far.

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.

The Anil Ambani-led company is scheduled to hold a board meeting on 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.

Technically, at least four analysts said profit booking can't be ruled out at current levels post the RPower's stellar recent run-up.

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "The stock has raced towards the Rs 51 zone in the last three weeks. It 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."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi, said, "Support will be Rs 48 and resistance Rs 52. A decisive close above Rs 52 may trigger a further upside towards Rs 55 level. The expected trading range will be between Rs 48 and Rs 56 for the short term."

Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, Investors should not enter at current levels as the risk-reward ratio is not looking good. Those holding can consider booking profits."

Sebi-registered research analyst AR Ramachandran said, "Reliance Power stock price is bullish but also very overbought on daily charts with next resistance at Rs 52. Investors should book profits at current levels as a daily close below support of Rs 43 could lead to a downward target of Rs 35 in the near term."

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