Reliance Power Stocks Jumps 15% to Attain New One-Year Peak; Assessing the Robustness of the Upward Trend

Reliance Power Stock Price: Registers a 15.10% Surge, Reaching a New One-Year High at Rs 29.88. Notably, the Stock Demonstrates a 33.63% Gain Over the Past Five Trading Days, Accompanied by Significant Trading Volumes.

Reliance Power Stock Analysis: Technical Analysts Consensus Points to Robust Performance on Daily Charts.

Reliance Power shares continued their upward trend for the fifth consecutive session in Thursday's trading. The stock surged by 15.10%, reaching a new one-year high at Rs 29.88. Over the course of five trading days, the stock has gained an impressive 33.63%. Notably, heavy trading volumes were witnessed, with approximately 6.64 crore shares changing hands on the BSE, significantly surpassing the two-week average volume of 2.46 crore shares.

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The turnover on the counter stood at Rs 187.97 crore, contributing to a market capitalization (m-cap) of Rs 11,254.42 crore. The buy orders amounted to 3,46,71,780 shares, while sell orders totaled 55,88,485 shares.

Technical analysts indicated a positive outlook for the stock on daily charts, describing it as 'strong.' The 21-day exponential moving average (DEMA) provided support, and analysts suggested that any short-term dip towards the Rs 24-23 sub-zone could be favorable for buyers. On the upside, a decisive breakout above Rs 30 is seen as crucial for further upward momentum.

Analysts from various firms provided insights into potential price movements. Osho Krishan from Angel One highlighted the stock's cyclical pattern of higher highs and higher lows, with immediate resistance around Rs 30. Shiju Koothupalakkal from Prabhudas Lilladher emphasized a positive move, targeting Rs 35 and Rs 43, with strong support at Rs 25. Jigar S Patel from Anand Rathi suggested a trading range between Rs 20 and Rs 35 for the month, with support at Rs 25 and resistance at Rs 32.

AR Ramachandran from Tips2trades noted the bullish sentiment in Reliance Power but cautioned about being overbought on daily charts, setting a target of Rs 32 with support at Rs 25.6. DRS Finvest founder Ravi Singh expressed optimism, predicting a near-term target of Rs 35 and advising a strict stop loss at Rs 24.

Reliance Power, a part of the Reliance Anil Dhirubhai Ambani Group, reported that promoters held a 24.49% stake in the company as of September 2023. Last year, reports indicated that Reliance Power and Reliance Infrastructure Ltd were in the process of raising funds from Reliance Commercial Finance through preferential shares issuance.

In this arrangement, Reliance Power allotted 7,59,77,000 equity shares to Reliance Commercial at Rs 20 apiece. Reliance Commercial was acquired by Authum Investment & Infrastructure through a debt resolution process. Authum Investment is a non-banking financial company (NBFC).