Reliance Power shares jump 13% today amid heavy trading volumes; here's what you need to know

Shares of Reliance Power rose sharply in Thursday's trade amid heavy volumes. The stock jumped 13.22 per cent to hit a day high of Rs 13.70 over its previous close of Rs 12.10. Around 3.69 crore shares changed hands today on BSE, which was more than three times compared to the two-week average volume of Rs 1.21 crore shares. Turnover on the counter stood at Rs 46.15 crore, commanding a market capitalisation (m-cap) of Rs 5,102.29 crore.

At today's high price of Rs 13.70, the scrip traded 51.38 per cent higher from its 52-week low of Rs 9.05, a level seen on March 28, 2023. Yet, the stock was down 45.09 per cent from its one-year high of Rs 24.95, hit on September 6 last year. Reliance Power's stock has slipped 7.68 per cent on a year-to-date (YTD) basis but has climbed 12.15 per cent in a year

The scrip was also buzzing a couple of days back after a report claimed that the company has apparently made a Rs 1,200 crore one-time settlement (OTS) offer to the lenders of its subsidiary, Vidarbha Industries Power Ltd (VIPL), for settling the debt. Following this, stock exchanges BSE and NSE sought clarification from the company.

In response, RPower stated, "We would like to inform you that there is no event or information which requires disclosure and accordingly, the same is factually incorrect." Appropriate disclosures would be declared promptly, in accordance with applicable regulations, as and when any disclosable event occurs, the company said.

The company cannot comment on movement in price in the stock markets, it added.

On the technical front, support on the counter could be seen at Rs 12.

Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher, said, "The stock has recently bottomed out near Rs 11 levels and indicated a pullback to improve the bias, which can be expected till Rs 14. The near-term support is at Rs 12 and major support can be maintained near the Rs 11 zone. Only a decisive move past would trigger for fresh upward journey for the next targets of 17-18 levels."

AR Ramachandran from Tips2trades said, "The counter looks bullish on the daily charts with the next resistance at Rs 13.95. A daily close above this resistance could lead to Rs 14.15 in the near term. Investors should book profits or keep a stop loss of support of 12."

Reliance Power was last seen trading higher than the 5-day, 20-, 50- and 100-day moving averages but lower than the 200-day moving averages. The counter's 14-day relative strength index (RSI) came at 64.75. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 6.90. It has a price-to-book (P/B) value of 0.51.

The stock has a one-year beta of 0.96, indicating average volatility.

Meanwhile, Indian equity benchmarks fell in late deals ahead of monthly futures and options (F&O) expiry. The domestic indices were trading in the red, dragged by banks, financials, metal, energy and technology stocks.

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