Reliance Power shares hovering near 52-week high level; will this upmove continue?

Shares of Reliance Power Ltd jumped 5.45 per cent to hit a high of Rs 62.12 in Wednesday's trade. At the day's high level, the stock was just 1.08 per cent away from its one-year high of Rs 62.80, seen a couple of days back on June 2.

Bourses BSE and NSE have put the securities of RPower under the short-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.

RPower's subsidiary, Reliance NU Energies, recently informed bourses that it received the letter of award (LOA) from state-run SJVN Ltd for a 350 MW inter-state transmission system (ISTS)-connected solar power project coupled with a 175 MW/700 MWh battery energy storage system (BESS).

Prior to this, the company partnered with Bhutan's Druk Holding and Investments (DHI) to develop India's largest solar power project in a Rs 2,000 crore joint venture. The 500 megawatt (MW) project will be developed under a 50:50 partnership through a Build-Own-Operate (BOO) model.

A few market experts were divided on the "high-risk, high-reward" counter, suggesting potential gains but advising caution. Immediate support could be seen in the Rs 60-58 range.

Jatin Gedia of ShareKhan recommended that existing investors continue to ride the upward momentum while maintaining a trailing stop loss. "This is a high-risk, high-reward stock. Those looking to enter at current levels should place a stop loss at Rs 50," he told Business Today, adding that the stock could potentially rise to Rs 68–72 levels.

Jigar S Patel, Senior Manager (Technical Research Analyst at Anand Rathi), said, "Support will be at Rs 60 and resistance at Rs 65. A decisive move above Rs 65 level may trigger a further upside towards Rs 68. The expected trading range will be between Rs 58 and Rs 68 for the short term."

Sebi-registered independent research analyst AR Ramachandran mentioned that Reliance Power is slightly bearish but overbought on daily charts with strong resistance at Rs 62.8. Investors should be booking profits as a daily close below support of Rs 58.1 could lead to a downward target of Rs 45 in the near term."

The scrip traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 73.07. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-earnings (P/E) ratio of 378.69 against a price-to-book (P/B) value of 2.65. Earnings per share (EPS) stood at 0.16 with a return on equity (RoE) of 0.71. According to Trendlyne data, RPower has a one-year beta of 1.3, indicating high volatility.

Promoters held a 24.98 per cent stake in the Anil Ambani-led entity as of May 7, 2025.