Buy or sell stock: Reliance Power share price takes a pause after 35% rise in eight days

Buy or sell stock: Reliance Power shares snapped their four-day rally in the early morning session on Wednesday. Reliance Power share price today opened upside at ₹28.45 apiece on NSE and went on to touch an intraday high of ₹28.50 apiece within a few minutes of the opening bell. However, profit-booking soon triggered and Anil Ambani-backed company’s stock retraced from its intraday high and made an intraday low of ₹26.75 per share, logging an intraday loss to the tune of 3 percent.

Reliance Power share price witnessed profit-booking after an uptrend for more than a week. After bottoming out at nearly ₹20 per share level, this Anil Ambani-backed company’s stock price has been hitting the upper circuit regularly. Since Monday last week, Reliance Power share price has touched the upper circuit on all sessions except on Tuesday last week. Reliance Power shares ended at ₹20.40 apiece on 13th March 2024. It witnessed strong buying interest on 14th March and that interest has been continuing till date. In the last eight straight sessions, Reliance Power share price has ascended from ₹20.40 to ₹27.60 apiece levels on NSE, logging around 35 percent appreciation in this time. Reliance Power share price today opened upside and went on to touch an intraday high of ₹27.60 per share, locking in a 5 percent upper circuit within a few minutes of the stock market’s opening bell.

According to stock market experts, Reliance Power shares are ascending on the buzz that the Anil Ambani-backed company has settled its dues with ICICI Bank, Axis Bank, and DBS Bank. They said that fresh capital infusion news is also a reason for the rise in Reliance Power share price. They advised Reliance Power shareholders to hold the scrip maintaining stop loss at ₹22. The stock may go up to ₹34 on breaching the hurdle placed at ₹30 on a closing basis.

What is fueling Reliance Power shares

On reasons that are fueling Reliance Power share price today, Parth Shah, Research Analyst at StoxBox said, “Reliance Power shares are ascending on debt reduction buzz. The stock ascended after the news reports that Reliance Power has settled dues with ICICI Bank, Axis Bank, and DBS Bank, with only a working capital loan left on its books from IDBI Bank.”

The StoxBox expert went on to add that some credit for appreciation in Reliance Power shares can be attributed to the capital infusion news as well.

“The recent gains in Reliance Power shares have been supported by the capital infusion and investment proposal from Reliance Commercial Finance as well,” said Parth Shah.

Reliance Power share price target

Expecting a further rise in Reliance Power shares, Sumeet Bagadia, Executive Director at Choice Broking said, “Reliance Power share price is currently in ₹22 to ₹30 price band. The stock may go up to ₹34 apiece level if it manages to breach ₹30 apiece level on a closing basis. So, those who have Reliance Power shares in stock portfolio, are advised to hold Reliance Power shares maintaining strict stop loss at ₹22 level.”

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.