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Business News/ Markets / Stock Markets/  Why is Anil Ambani-backed Reliance Power share price is skyrocketing — explained
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Why is Anil Ambani-backed Reliance Power share price is skyrocketing — explained

Reliance Power share: Anil Ambani-backed company's stock has surged to the tune of over 30 percent in seven straight sessions

Reliance Power shares have touched the upper circuit on four out of five sessions in the week gone by. (PHOTO: MINT)Premium
Reliance Power shares have touched the upper circuit on four out of five sessions in the week gone by. (PHOTO: MINT)

Reliance Power shares have been in an uptrend for the last one week. After bottoming out at around 20 apiece level on 13th March 2024, Reliance Power share price finished at 26.30 per share level on Friday last week. So, in the last seven straight sessions, this Anil Ambani-backed company's stock has surged to the tune of over 30 percent. Out of the five sessions in the week gone by, Reliance Power share price touched the upper circuit in four sessions. The only session in which, Reliance Power stock price failed to lock in the upper circuit was on Tuesday.

According to stock market experts, Reliance Power shares are skyrocketing these days on the new buzz that the Anil Ambani-backed company has settled dues with ICICI Bank, Axis Bank, and DBS Bank. The news reports are claiming that now only a working capital loan is left on its books from IDBI Bank. They said that some credit for the recent Reliance Power share price rally can be attributed to the capital infusion move by Reliance Commercial Finance. They said that Reliance Power share price today has strong support placed at 22 apiece level whereas it is facing a hurdle at the 30 per share mark. On breaching this immediate hurdle, Reliance Power share price may soar to the tune of 34 per share level.

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Triggers for Reliance Power shares

Speaking on the factors that are fueling Reliance Power shares, Parth Shah, Research Analyst at StoxBox said, “Reliance Power shares have surged amid its concentrated efforts to reduce debt and improve its business and financial viability. Shares have reacted positively to reports that the company has settled dues with ICICI Bank, Axis Bank, and DBS Bank, with only a working capital loan left on its books from IDBI Bank."

"Moreover, the recent gains have been supported by the capital infusion and investment proposal from Reliance Commercial Finance which has provided hopes of a revival in the fortunes of the company. We sense that the company’s efforts are in the right direction at a time when there are abundant opportunities in the power sector. We believe that the company’s efforts will help it to pursue growth initiatives and should start reflecting in the business and financial performance going ahead," the StoxBox expert added.

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Reliance Power share price target 2024

Asked about the technical outlook of Reliance Power shares, Sumeet Bagadia, Executive Director at Choice Broking said, "Reliance Power shareholders can hold the scrip maintaining stop loss at 22 apiece level. The stock is facing resistance at 30 apiece level. On breaching this hurdle, Reliance Power share price may go up to 34 per share level in the short term."

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.

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ABOUT THE AUTHOR
Asit Manohar
Chief Content Producer at Live Mint Digital Team
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.
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Published: 23 Mar 2024, 02:23 PM IST
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