SMAR Daily Industry News

Reliance Power shares jump 9.22% amid bearish outlook

Reliance Power Limited closed Thursday, October 29, with a 9.22% rise, taking the share price to ₹18.95 on the Bombay Stock Exchange. The move lifted the company’s market capitalisation to roughly ₹7,837.29 crore. Over the past week the stock posted an 11.21% gain, and it has inched up about 1.23% in the last two weeks. Despite the short‑term rally, the share is still 59% lower than its level a year earlier, underscoring a still‑weak longer‑term trajectory.

Technical analysts note that the recent bounce may be a “dead‑cat bounce” rather than a sustained reversal. Jigar S Patel of Anand Rathi points to the daily Relative Strength Index staying in the bearish 60‑20 band, suggesting that overall momentum remains soft. He highlights a critical resistance zone near ₹20, with a decisive breakout above that threshold required for a more optimistic outlook. On the downside, the ₹16 level serves as a key support; a breach could trigger further selling pressure.

Virat Jagad of Bonanza adds that the stock is climbing from oversold conditions, backed by a noticeable volume surge and an RSI moving toward the neutral 50 mark. Nevertheless, broader sentiment stays bearish. Jagad identifies resistance at ₹20.30 and a higher cluster around ₹21.70‑₹22.00, advising traders to avoid chasing the rally unless a sustained breakout above ₹22 occurs with strong volume. Both analysts agree that current price action lacks the confirmation needed for a confident bullish stance.

Investors should watch the RSI for a shift into bullish territory and monitor price behavior around the identified support and resistance levels. A clean break above ₹22, coupled with continued volume strength, could signal the start of a more durable uptrend. Conversely, a slip below ₹16 would likely reinforce the prevailing downtrend and could accelerate the stock’s decline. The technical picture remains mixed, and prudent traders are urged to wait for clearer signals before adding new positions.

The broader market context includes Anil Ambani’s group facing ongoing challenges, with Reliance Power’s share price still far from its historical highs. While the recent surge offers a glimpse of potential recovery, the prevailing bearish indicators suggest that any optimism should be tempered with caution. Market participants will be closely tracking the next few trading sessions for signs of either a genuine reversal or a short‑lived rally.

Why it matters

The stock’s near‑term movement could signal the next phase for Anil Ambani’s power business, affecting investors and the broader energy sector.

FAQ

What was the percentage increase in Reliance Power shares on October 29?
The shares rose 9.22% to close at ₹18.95 per share.

What are the key technical resistance and support levels identified by analysts?
Resistance is seen near ₹20, with higher zones at ₹20.30 and ₹21.70‑₹22.00; support is considered important around ₹16.

How do analysts describe the current RSI reading?
The daily RSI remains in the bearish range of 60‑20, indicating weak momentum, though it is moving toward the neutral 50 level.

Source: Mint Markets. See the original source for full details.