RPower shares slip further, still up 48% in a month; what's next?

Shares of Reliance Power Ltd continued to slip for the third consecutive session on Monday. Last checked, the stock shed 0.30 per cent to close at Rs 66.87. Despite this, it has rallied 48.34 per cent in the past one month.

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.

On the business front, Reliance NU Energies -- a subsidiary of RPower -- was recently awarded a letter of award (LoA) by state-run SJVN Ltd for a 350 MW inter-state transmission system (ISTS)-connected solar power project, integrated with a 175 MW/700 MWh battery energy storage system (BESS).

Prior to this, the company partnered with Bhutan's Druk Holding and Investments (DHI) to develop India's largest solar power project in a Rs 2,000 crore joint venture. The 500 megawatt (MW) project will be developed under a 50:50 partnership through a Build-Own-Operate (BOO) model.

A few analysts have advised booking profits at the current levels. One of them cautioned that if the stock closes below the Rs 64 mark, it could potentially retest Rs 52–54 levels in the near term.

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, said RPower has been on a strong upward trend for the past five trading sessions, pushing into overbought territory. "The stock recently broke out above the Rs 52–54 range, hitting fresh 52-week highs. However, with the sharp upmove, momentum may start to wane and profit booking could set in. From a technical standpoint, if the stock closes below Rs 64, it may retrace towards its breakout zone around Rs 52–54 in the near term."

Jigar S Patel, Senior Manager (Technical Research Analyst at Anand Rathi), noted that support on the counter will be at Rs 64 and resistance at Rs 69. "A decisive move above Rs 69 level may trigger a further upside towards Rs 75. The expected trading range will be between Rs 64 and Rs 75 for the short term," he stated.

Sebi-registered independent research analyst AR Ramachandran said, "Reliance Power is bearish but overbought on daily charts with strong resistance at Rs 76.5. Investors should be booking profits as a daily close below support of Rs 65 could lead to a downward target of Rs 52 in the near term."

Promoters held a 24.98 per cent stake in the Anil Ambani-led entity as of May 7, 2025.