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% gain over the last 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. Still, 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 with caution,” explained Jigar S Patel.
According to the expert, the stock is facing major resistance near ₹20, and a decisive breakout above this level would be required to improve its technical outlook. On this downside, ₹16 is an important support level that traders should monitor closely.
“A breach of this support could intensify selling pressure and weaken the stock further. Considering the prevailing bearish momentum, we advise traders to avoid fresh buying at current levels and wait for stronger technical confirmation before considering any bullish positions,” added Patel.
Reliance Power is witnessing a sharp rebound from oversold levels, supported by a strong volume spike and an RSI recovery toward 50, according to Virat Jagad, Sr. Technical Research Analyst at Bonanza, adding that broader sentiment around the stock remains bearish.
“Resistance lies at ₹20.30 and ₹21.70–22.00. Avoid chasing the rally; a sustained breakout above ₹22 with strong volume is needed for a stronger trend reversal signal,” stated the expert.
Reliance Power share price trend
The stock closed 9.22% higher at ₹18.95 per share on the BSE, with a market capitalisation of ₹7,837.29 crore, on Thursday. Its share price has surged 11.21% over the past week and jumped around 1.23% over the past two weeks.
About The Author
