Stock to buy: Reliance Power share price rises 50% in eight days. Experts see 33% more upside

  • Stock to buy: Reliance Power share price has been hitting upper circuit since 18th September 2024

Asit Manohar
Updated28 Sep 2024, 02:45 PM IST
Stocks to buy: Experts believe that Reliance Power share price may touch  <span class='webrupee'>₹</span>62 per share market in upcoming sessions.
Stocks to buy: Experts believe that Reliance Power share price may touch ₹62 per share market in upcoming sessions.(Photo: Reuters)

Reliance Power share: Anil Ambani-owned Reliance Power shares have been on an uptrend for the last eight sessions. After the announcement of debt settlement as a guarantor on behalf of Vidarbha Industries Power Limited (VIPL), Reliance Power shares came out of the base building mode and started hitting the upper circuit. The Anil Ambani-owned Anil Dhirubhai Ambani Group (ADAG) stock turned out to be a circuit-to-circuit stock when the company board declared a board meeting date to consider and approve fundraising for the long term. Reliance Power's share price has remained one of the circuit-to-circuit stocks of the Indian stock market since 18th September 2024, logging around a 50% rise in the last eight straight sessions.

Reliance Power news

On Friday last week, Anil Ambani-owned Reliance Power set a board meeting date to consider the fundraising proposal, saying, "We wish to inform you that a meeting of the Board of Directors of the Company will be held on Thursday, October 03, 2024, inter alia, to consider and approve raising of long term resources from domestic and/or global markets, inter alia, by issue of equity shares/equity-linked securities/ warrants convertible into equity shares, by way of preferential issue and/or qualified institutional placement and/or rights issue and/or foreign currency convertible bonds or any other method including determination of issue price, if any and seeking members' and other approval(s), as the Board may deem appropriate."

On September 17, 2024, Reliance Power declared debt settlement as guarantor on behalf of VIPL, saying, "Reliance Power Limited (Reliance Power) today announced that the entire obligations of the Company as a Guarantor on behalf of Vidarbha Industries Power Limited (VIPL) stand fully settled resulting in release and discharge of Corporate Guarantee, Undertakings and all obligations and claims thereunder about the outstanding debt of VIPL amounting to 3872.04 Crore. Reliance Power has settled all disputes with CFM Asset Reconstruction Private Limited (CFM). 100% shares of VIPL have been pledged in favour of CFM against the release and discharge of Corporate Guarantee given by Reliance Power."

Reliance Power share price target

"Reliance Power shares have been under the radar of Dalal Street bulls since the Company became debt-free on bulls on a standalone basis. However, the stock received some dent after SEBI banned Anil Ambani from the Security markets. But the Company is slowly but steadily coming out of debt and has recently announced that it will settle all its outstanding debt with CFM," said Avinash Gorakshkar, Head of Research at Profitmart Securities.

Speaking on the technical setup regarding Reliance Power shares, Sumeet Bagadia, Executive Director at Choice Broking, said, “Reliance Power share price today is in a long-term uptrend, currently trading at 46.35, which aligns with its previous high. The stock has consistently formed higher highs and higher lows over the past few months, signalling a strong bullish pattern. The recent increase in trading volume further supports this upward momentum. Buying on dips is recommended, with a positional target in the 58 to 62 range, offering a favourable risk-reward ratio for investors.”

Also Read | Vedanta share: 13.50% dividend yield, 98% return in YTD. Is this a stock to buy?
Also Read | Why gold outshined Nifty 50 in YTD despite bull trend on Dalal Street?

On the suggestion to investors regarding Reliance Power shares, Bagadia said, "Investors who entered at lower levels may consider a prudent approach by booking partial profits at the current market price. For fresh investments, a disciplined strategy involves waiting for potential dips. Additionally, placing trailing stop-loss orders near the 40 level can safeguard profits and manage risks effectively."

So, Bagadia expects around 33% more upside from Reliance Power shares' current market price of 46.35 apiece.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.

Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

MoreLess
First Published:28 Sep 2024, 02:45 PM IST
Business NewsMarketsStock MarketsStock to buy: Reliance Power share price rises 50% in eight days. Experts see 33% more upside

Most Active Stocks

Tata Steel share price

149.70
07:18 PM | 1 NOV 2024
1.05 (0.71%)

Indian Oil Corporation share price

145.00
07:19 PM | 1 NOV 2024
2.3 (1.61%)

Tata Power share price

445.20
07:19 PM | 1 NOV 2024
5.15 (1.17%)

Bandhan Bank share price

183.65
07:10 PM | 1 NOV 2024
1.4 (0.77%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

Rainbow Childrens Medicare share price

1,545.00
06:59 PM | 1 NOV 2024
-67.25 (-4.17%)

ICICI Securities share price

833.45
06:59 PM | 1 NOV 2024
-32.85 (-3.79%)

Vijaya Diagnostic Centre share price

966.70
06:59 PM | 1 NOV 2024
-30.35 (-3.04%)

Narayana Hrudayalaya share price

1,235.60
06:59 PM | 1 NOV 2024
-36.75 (-2.89%)
More from Top Losers

Brigade Enterprises share price

1,244.80
07:19 PM | 1 NOV 2024
71.75 (6.12%)

PCBL share price

432.15
07:17 PM | 1 NOV 2024
21.35 (5.2%)

Piramal Pharma share price

281.85
07:17 PM | 1 NOV 2024
13.45 (5.01%)

Jubilant Pharmova share price

1,273.00
06:59 PM | 1 NOV 2024
60.65 (5%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    81,355.000.00
    Chennai
    81,361.000.00
    Delhi
    81,513.000.00
    Kolkata
    81,365.000.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    102.98/L0.00
    Chennai
    100.80/L0.00
    Kolkata
    104.95/L0.00
    New Delhi
    94.77/L0.00

    Popular in Markets

      HomeMarketsPremiumInstant LoanMint Shorts