RPower shares plunge 5% amid profit booking; trend reversal after recent surge?

Reliance Power Ltd shares resumed their decline on Thursday after a brief pause as investors booked profits following a sharp recent rally. The stock fell 4.85 per cent to a day low of Rs 63.60 but remains up nearly 40 per cent over the past month.

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.

Reliance NU Energies, a subsidiary of the company, recently notified the stock exchanges that it secured a Letter of Award (LoA) from state-run SJVN Ltd for setting up a 350 MW inter-state transmission system (ISTS)-connected solar power project, along with a 175 MW/700 MWh battery energy storage system (BESS).

Earlier, the company entered into a Rs 2,000 crore joint venture with Bhutan's Druk Holding and Investments (DHI) to develop India's largest solar power project. The 500 MW project will be executed under a 50:50 Build-Own-Operate (BOO) partnership.

A few analysts suggest RPower may face near-term weakness after a strong rally, with key support seen around Rs 60–63. A break below this could trigger a fall towards Rs 52 level, while resistance lies in the Rs 67–69 range.

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, noted that RPower has been on a bullish spree for the past five trading weeks, soaring to overbought terrain. "The momentum is likely to fizzle out and possibility of profit booking is evident. A closure below Rs 62 could lead the counter to test Rs 54-52 levels near period," he also stated.

Sebi-registered independent research analyst AR Ramachandran suggested that the counter is looking bearish on daily charts with strong resistance at Rs 69, adding that a close below the support of Rs 60 could lead to a downward target of Rs 52 in the near term.

Jigar S Patel, Senior Manager (Technical Research Analyst at Anand Rathi), said, "Support will be at Rs 63 and resistance at Rs 67. A decisive move above Rs 67 level may trigger a further upside towards Rs 70. The expected trading range will be between Rs 63 and Rs 67 for the short term."

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