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Reliance Power shares on fire! Anil Ambani’s stock jumps 9.22%, but remains down 59% in a year - should you buy?

By · Published by Everything Blog

In short

Anil Ambani's power company finished trading at ₹18.95 with a market valuation reaching ₹7,837.29 crore following the surge. Despite delivering double-digit returns over the past week, analysts emphasize that trading indicators like the Relative Strength Index remain suppressed in negative territory. Downside risks persist, with experts warning that slipping below key support at ₹16 could trigger renewed selling.

Key points

  • Analysts advise traders against initiating fresh buy positions until the stock achieves a…: Analysts advise traders against initiating fresh buy positions until the stock achieves a sustained breakout above key overhead resistance.
  • A decisive price drop below the crucial ₹16 support level could intensify selling pressur…: A decisive price drop below the crucial ₹16 support level could intensify selling pressure across the stock.
  • The recent rebound is currently categorized as a temporary oversold bounce rather than a…: The recent rebound is currently categorized as a temporary oversold bounce rather than a confirmed long-term trend reversal.

Sources checked by our analysis pipeline: 1

Reliance Power Limited shares ended Thursday, October 29, with a spectacular gain of 9.22%. Despite the sharp rally, Anil Ambani’s power stock remained 59% below its year-ago level. With the stock staging a strong rebound, investors are left wondering: Is the worst behind Reliance Power?

Shares of Reliance Power ended 9.22% higher on Thursday, and delivered an overall 11.21% over the last one week. The power stock has surged nearly 1.23% over the last two weeks.

Is the worst over for Reliance Power stock? Here’s what technical analysts say

Anil Ambani’s group stock witnessed steep recovery over the past few sessions, but the current upmove appears to be a “potential dead-cat bounce rather than a confirmed trend reversal,” according to Jigar S Patel, Senior Manager - Technical Research, Anand Rathi Share and Stock Brokers Limited.

“From a technical perspective, the daily Relative Strength Index (RSI) continues to remain within the bearish range of 60–20, indicating that the broader momentum remains weak. Unless the RSI shifts into a bullish range and the price structure improves, the recent recovery should be approached…

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