Reliance Power shares zoom 11%; here's what analysts have to say

Shares of Reliance Power Ltd saw a sharp uptick in Wednesday's trading session, registering an 11.20 per cent jump to hit a high of Rs 41.40. The stock was last seen trading 6.07 per cent up at Rs 39.49. At this price, it has slipped 11.62 per cent on a year-to-date (YTD) basis.

The scrip witnessed high trading volume on BSE today as around 91 lakh shares changed hands at the time of writing this story. The figure was higher than the two-week average volume of 42.95 lakh shares. Turnover on the counter came at Rs 36.25 crore, commanding a market capitalisation (m-cap) of Rs 15,846.95 crore. There were 10.40 lakh sell orders against buy orders of 3.13 lakh shares.

A market expert suggested that the counter is suitable only for high-risk-taking investors while another said support could be seen at Rs 39 level.

"The stock by and large moves on speculation and is suitable only for high-risk appetite investors. They should maintain a strict stop loss while taking any positions," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.

"Support will be at Rs 39 and resistance at Rs 43. A decisive move above Rs 43 level may trigger a further upside towards Rs 45. The expected trading range will be between Rs 38 and Rs 45 for the short term," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi.

The counter 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 59.94. A level below 30 is defined as oversold while a value above 70 is considered overbought.

As per BSE, the company's stock has a price-to-equity (P/E) ratio of 232 against a price-to-book (P/B) value of 1.68. Earnings per share (EPS) stood at 0.17 with a return on equity (RoE) of 0.71. According to Trendlyne data, RPower has a one-year beta of 1.1, indicating high volatility.

As of December 2024, promoters held a 23.26 per cent stake in the Anil Ambani-led entity.