Why is Anil Ambani-owned Reliance Power share price skyrocketing?

Stock market today: Anil Ambani-owned Reliance Power share price has been on an uptrend for the last one week. In this period, Reliance Power share price has risen nearly 34 percent. Reliance Power share price today opened with an upside gap at ₹33 apiece on NSE and touched an intraday high of ₹33.11 per share. While climbing to this intraday high, Reliance Power share price locked in 5 percent upper circuit in early morning deals on Thursday.

According to stock market experts, the Anil Ambani-owned company has become a debt-free company on standalone basis, and the company has been able to enhance operational competence, attracting bulls' attention towards Reliance Power shares. They said that the Reliance Power share has given a fresh breakout at ₹28, and it may touch the ₹36 per share mark soon.

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Why is Reliance Power share price skyrocketing?

Speaking about the reasons fueling Reliance Power's share price today, Parth Shah, Research Analyst at StoxBox, said, "Reliance Power is gaining traction due to its becoming debt-free on a standalone basis and clearing all outstanding dues to lenders. The company had a debt of around ₹800 crores, which has been repaid to banks. In addition, the company would benefit from the energy policy, which is a major part of the agenda of the newly formed Modi 3.0 cabinet."

Reliance Power share price target

Anticipating further growth in Reliance Power share price, Sumeet Bagadia, Executive Director at Choice Broking, stated, “Reliance Power shares have shown a breakout at the ₹28 mark. The stock is displaying a positive chart pattern, indicating potential for further gains. The stock has breached above ₹32 decisively and we can expect it to touch ₹36 in the near term.”

Offering advice to investors considering Reliance Power shares, Sumeet Bagadia recommended, “New investors can consider buying the stock, setting a stop loss at ₹28, and aiming for targets of ₹36. Existing Reliance Power shareholders can also hold the stock, targeting the same levels, while maintaining a stop loss at ₹28. Bagadia reiterated the importance of the buy-on-dips strategy, particularly while the stock remains above the ₹28 mark.”

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.