Anil Ambani-owned Reliance Power has seen its share price increase significantly over the past week, rising nearly 22 percent. Today, Reliance Power shares opened with an upward gap at ₹27.99 each on the NSE and reached an intraday high of ₹28.68 per share. During this climb, the share price hit the 10 percent upper circuit in early morning trading on Tuesday. According to stock market experts, Reliance Power has become debt-free and improved its operational efficiency, drawing the attention of bullish investors. Experts suggest that with a fresh breakout at ₹28, the share price could soon reach ₹36 per share.
Why is Reliance Power share price skyrocketing?
Discussing the factors driving Reliance Power’s share price today, Parth Shah, Research Analyst at StoxBox, stated, “Reliance Power is attracting attention due to its debt-free status on a standalone basis and the settlement of all outstanding dues to lenders. The company had a debt of around ₹800 crores, which has been repaid to banks. Additionally, the company stands to benefit from the energy policy, a key component of the newly formed Modi 3.0 cabinet’s agenda.”
Anticipating further growth in its’ Power’s share price, Sumeet Bagadia, Executive Director at Choice Broking, remarked, “Power shares have shown a breakout at the ₹28 mark. The stock is demonstrating a positive chart pattern, suggesting potential for additional gains. In the short term, it may reach ₹32. However, if the stock closes above ₹32, it could potentially touch ₹36 in the near future.”
Advising investors on its’ Power shares, Sumeet Bagadia recommended, “New investors should consider buying the stock with a stop loss at ₹24 and aim for targets of ₹32 and ₹36. Current Reliance Power shareholders should hold their shares, targeting the same levels, and maintain a stop loss at ₹24. Bagadia emphasized the importance of a buy-on-dips strategy, especially as long as the stock stays above the ₹24 mark.”
