RPower shares jump 14% in 3 sessions; is more steam left?

Shares of Reliance Power Ltd continued their strong up move for the third straight session in Monday's trade. The stock surged 5 per cent to hit its upper circuit limit of Rs 23.23. At this price, it has gained 13.98 per cent in three trading days.

RPower, in a recent BSE filing, said, "We wish to inform you that for the purpose of the debt settlement, the company along with its Promoter, Reliance Infrastructure Ltd, as a guarantor has signed a settlement agreement with ICICI Bank Ltd on March 14, 2024. The entire obligations with respect to the borrowings of the company have been settled."

The company's stock today saw high trading volume as around 37.51 lakh shares changed hands today at the time of writing this story. The figure was higher than the two-week average volume of 19.23 lakh shares. Turnover on the counter came at Rs 8.70 crore, commanding a market capitalisation (m-cap) of Rs 8,853.38 crore.

On technical setup, support on the counter could be seen at Rs 20. Immediate resistance will be at Rs 25. An analyst suggested taking exit at current levels.

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 20 and resistance at Rs 25. A decisive close above Rs 25 level may trigger a further upside till Rs 28. Expected trading range will be between Rs 20 and Rs 30 for a month."

DRS Finvest founder Ravi Singh said, "The stock is not looking good. One should consider taking exit immediately. Resistance will be at Rs 25."

Reliance Power, formerly known as Reliance Energy Generation Ltd, is a part of the Reliance Anil Dhirubhai Ambani Group. As of December 2023, promoters held 24.49 per cent stake in the company.