RPower, RInfra shares climb 5% each; will this momentum sustain?

Shares of Reliance Power Ltd and Reliance Infrastructure Ltd hit their upper circuit levels on Wednesday, halting their respective five-session and three-session losing streaks. RPower surged 5 per cent to close at Rs 47.58, while RInfra also gained 5 per cent to settle at Rs 295.25. Despite the bounce, RPower has declined 27.13 per cent this month and RInfra is down 20.67 per cent over the same period.

The recent downturn began after the Enforcement Directorate (ED) conducted raids at several locations linked to the Reliance Anil Dhirubhai Ambani Group (ADAG) in Mumbai and New Delhi, as part of a money laundering investigation. Also, Anil Ambani had reportedly appeared before the agency yesterday for questioning in connection with alleged bank loan fraud cases.

Earlier, Reliance ADAG clarified that the probe is related to transactions involving YES Bank and Reliance Home Finance from over eight years ago, and that the loans in question have already been fully repaid.

The group also emphasised that both RPower and RInfra are "nearly debt-free," with net worths of Rs 16,431 crore and Rs 14,883 crore, respectively.

Technically, RPower finds immediate support near Rs 43 and faces resistance around Rs 49. In the case of RInfra, support is seen between Rs 265 and Rs 270, with resistance in the Rs 300–312 range.

Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi, stated that support for RPower is seen at Rs 43, with immediate resistance at Rs 49. A sustained move above Rs 49 could take the stock up to Rs 52, with a near-term trading range of Rs 43–52.

According to Sebi-registered independent analyst AR Ramachandran, "RPower is showing slight bullishness on the daily charts with strong support at Rs 42.94. A daily close above Rs 50 could lead to an upside target of Rs 62.6 in the near term."

For Reliance Infrastructure, Patel noted support at Rs 270 and resistance at Rs 300. A sustained move beyond Rs 300 could push the stock towards Rs 312, with the near-term trading range pegged between Rs 265 and Rs 312.

Ramachandran also observed that the stock appears mildly bullish on the charts, with strong support at Rs 267.30. A close above the resistance level of Rs 312 could potentially trigger a short-term rally towards Rs 392.