Shares of Anil Ambani’s Reliance Power witnessed strong buying interest on Wednesday, rebounding sharply in early trade. The stock on the National Stock Exchange of India rose around 6 per cent to trade near ₹21.66, gaining about ₹1.30 during the session. Despite the day's rally, the stock has been under heavy pressure in recent months. Over the past six months, Reliance Power has declined by more than 50 per cent, reflecting continued volatility in the counter. Market participants are closely watching the stock as it attempts to stabilise after a prolonged downtrend. The sharp move on Wednesday comes at the start of the new financial year, with renewed buying seen across several power and infrastructure stocks. Analysts, however, caution that the counter may remain volatile given its steep correction over the last few months.
Last month, the company issued a clarification denying media reports that alleged Enforcement Directorate (ED) raids at locations linked to Reliance Power. From a technical perspective, some analysts largely maintained a bearish stance on the stock.Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, stated, "RPower has been in a secular downtrend, with no sign of technical respite or a pullback. The counter is hovering below the short-term EMA, implying inherent weakness. On the levels front, the Rs 25-26 subzone is likely to act as a formidable barrier and a sustained breach could only provide some respite in the counter. On the contrary, with the ongoing structure, any breakdown below Rs 20 is likely to aggravate correction towards the Rs 18-17 zone in the coming future."
Kunal Kamble, Senior Technical Research Analyst at Bonanza, said, "Reliance Power is in a clear downtrend, forming consistent lower highs and lower lows on both daily and weekly timeframes, indicating sustained selling pressure. The stock has decisively broken an important support zone, suggesting a continuation of the bearish trend. Price remains below all major short-term and long-term EMAs, reinforcing weakness. Avoid fresh positions and maintain strict stop loss discipline for existing holdings."According to AR Ramachandran, a Sebi-registered research analyst at Tips2trades, "The stock is bearish on daily charts with strong resistance at Rs 23.5. A daily close below the support of Rs 20.8 could lead to a downward target of Rs 18.7 in the near term."