Posted on April 24, 2025, by Niftynews
Reliance Power share price surged by an impressive 7% in the early hours of trading on April 24, 2025, rising to ₹46.87 on the BSE despite a generally flat market. This surge comes as a part of the stock’s impressive multibagger performance in recent years, delivering 294% returns in 2 years and 2,031% returns over the last 5 years.
With the broader market showing signs of weakness, the Reliance Power rally caught the attention of traders and investors alike. Here’s what the recent price movements mean, and whether it’s a good time to buy, sell, or hold.
🚀 Reliance Power Share Price Performance: A History of Strong Gains
Reliance Power has shown phenomenal long-term growth, particularly when considering its five-year performance. With the stock climbing a staggering 2,031%, it has emerged as a standout among Indian power sector stocks.
Key Performance Highlights:
- 2-Year Return: 294%
- 5-Year Return: 2,031%
- YTD Performance: Up 4%
- 1-Year Performance: 68%
This exceptional growth reflects not just short-term momentum but also the company’s ability to thrive in the long term. The stock’s recent rally, gaining over 20% in the last three months and 22% in the last month, shows how it has maintained investor confidence in a challenging market environment.
💡 Why Is Reliance Power Share Price Rising Now?
The 7% jump in Reliance Power share price on April 24 can be attributed to several factors:
1. Strong Trading Volume
On April 24, Reliance Power saw trading volumes surge to 6 crore shares, surpassing its weekly average of 5 crore shares. Increased volumes often indicate growing investor interest and confidence in the stock, signaling potential for further price appreciation.
2. Sectoral Momentum in Power Stocks
Despite the Indian stock market’s overall flat performance, the BSE Power index rose by 0.28%, led by gains in other prominent stocks like Tata Power, Suzlon Energy, and NTPC. As one of the leading power sector players, Reliance Power benefits from a rising tide that lifts all boats.
3. Market Conditions
Even though the Sensex and Nifty indexes saw a decline, Reliance Power’s ability to post such a strong performance points to underlying strength in the stock itself. It appears that investor sentiment in the stock is independent of broader market movements, a trait that is typical of well-performing multibagger stocks.
📊 Technical Analysis: What’s Next for Reliance Power?
Current Technical Outlook
According to Ruchit Jain, Vice President of Equity Technical Research at Motilal Oswal, the Reliance Power share price has been trading in a sideways range. The stock faces resistance near its previous swing high of ₹48-49, while it has strong support around the ₹41 level. This suggests that Reliance Power is unlikely to see a dramatic breakout unless it decisively crosses this resistance level.
Key Technical Levels to Watch:
- Resistance Level: ₹48-49
- Support Level: ₹41
- Current Price (as of 9:35 AM): ₹46.20 (up 6.08%)
Jain suggests that investors with existing positions at lower levels should hold their stocks but recommends not entering fresh positions as the stock is likely to remain in a sideways trend for the short term.
💬 Should You Buy, Sell, or Hold Reliance Power Shares?
1. Buy:
- If the stock breaks the ₹48-49 resistance level decisively and shows sustained momentum, there could be room for further upside potential.
- Long-term investors who believe in the growth of India’s power sector may consider holding onto the stock, as its 5-year returns have been exceptional.
2. Sell:
- Short-term traders may want to consider selling near resistance levels if the stock faces difficulty crossing the ₹48-49 mark.
- If the broader market turns bearish and Reliance Power fails to maintain its momentum, a correction could be imminent.
3. Hold:
- For those with existing positions at lower levels, it’s advisable to hold for now, as the stock has shown resilience despite market fluctuations.
- Rangebound trading suggests that there may be future opportunities if the stock consolidates before breaking higher.
📉 Reliance Power Stock Intrinsic Value and Market Sentiment
While Reliance Power’s recent price movements have been strong, investors should also keep an eye on the company’s fundamentals and how they align with market sentiment. The company’s ability to sustain growth amid ongoing volatility in the power sector will be crucial in determining future performance.
Factors to Watch:
- Power Sector Reforms: Any policy changes in India’s power and energy sector can significantly impact Reliance Power’s growth trajectory.
- Market Sentiment: Despite a positive technical outlook, the broader market conditions could affect Reliance Power stock price, especially if the overall market experiences a downturn.
- Quarterly Results: The upcoming quarterly earnings report will give investors a clearer picture of how the company is performing amid the sector’s dynamics.
🧐 Final Thoughts
Reliance Power’s 7% price surge in a flat market highlights the stock’s strong momentum and growing investor interest. However, given the sideways trend and resistance near ₹48-49, the stock’s near-term movement may be limited unless it breaks above these levels.
For long-term investors, Reliance Power remains a promising pick within India’s growing power sector, but short-term traders should proceed with caution, keeping a close watch on the stock’s technical signals.
