Reliance Power shares extended their downward trend on October 7, hitting the 5 percent lower circuit for the third straight session as investors locked in profits. The stock is now trading 11 percent below its 52-week high of ₹53.64, which it reached just last week
The stock has risen more than 60% in the last month, thanks to high investor optimism following the announcement that Anil Ambani’s company had become debt-free.
However, following this strong run, investors began to take profits, coinciding with a broader market sell-off. On September 18, Reliance Power’s market sentiment improved after the company was released from its corporate guarantee, commitments, and obligations related to the outstanding debt of its subsidiary, Vidarbha Industries Power Limited (VIPL), amounting to ₹3,872.04 crore.
The company stated that it had addressed all problems with CFM Asset Reconstruction Private Limited (CFM). As part of the arrangement, VIPL pledged 100% of its shares to CFM in consideration for the release and discharge of the corporate guarantee previously offered by Reliance Power.
Prior to it, the business received a substantial 500 MW/1000 MWh battery storage contract from the Solar Energy Corporation of India (SECI). This contract makes Reliance Power a prominent player in one of the world’s largest independent battery energy storage projects.
Reliance Power shares are currently trading above their 5-day, 50-day, 100-day, and 200-day moving averages (DMA). With a relative strength index (RSI) of 79, the stock is indicating overbought conditions