Reliance Power share price: The stock was last seen trading higher than the 5-day, 20-, 50- and 100-day moving averages but lower than the 200-day moving averages. Shares of Reliance Power Ltd rose sharply in Tuesday's trade amid heavy volumes. The stock jumped 13.78 per cent to hit a day high of Rs 13.05 over its previous close of Rs 11.47. At today's high price, the scrip traded 44.20 per cent higher from its 52-week low of Rs 9.05, a level seen on March 28, 2023. Yet, the stock was down 47.70 per cent from its one-year high of Rs 24.95, hit on September 6 last year. Around 2.93 crore shares changed hands today on BSE, which was more than four times compared to the two-week average volume of Rs 68.03 lakh shares. Turnover on the counter stood at Rs 36.85 crore, commanding a market capitalisation (m-cap) of Rs 4,844.56 crore.
The strong upward move in the share price came after it was reported that the company has made a Rs 1,200 crore one-time settlement (OTS) offer to the lenders of its subsidiary, Vidarbha Industries Power Ltd (VIPL), for settling the debt. RPower has offered to pay Rs 1,200 crore in upfront cash to the lenders of VIPL, which included Axis Bank, SBI, Bank of Baroda (BoB), PNB, Canara Bank, and Bank of Maharashtra (BoM).
The outstanding loan of VIPL as on March 31, 2022, is around Rs 2,200 crore. VIPL operates a coal-based power project with a capacity of 600 MW in Nagpur. And, RPower's OTS offer is backed by Varde Partners of Singapore. Varde is also an investor in another group company, Reliance Infrastructure Ltd.
Support on the counter could be seen at Rs 12. "Reliance Power looks bullish on the daily charts with the next resistance at Rs 13.10. A daily close above this resistance could lead to Rs 14.15 in the near term. Investors should book profits or keep a stop loss at the support zone of Rs 12," said AR Ramachandran from Tips2trades.
Reliance Power was last seen trading higher than the 5-day, 20-, 50- and 100-day moving averages but lower than the 200-day moving averages. The counter's 14-day relative strength index (RSI) came at 66.04. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 6.54. It has a price-to-book (P/B) value of 0.48.
The stock has a one-year beta of 0.95, indicating average volatility.
Meanwhile, Indian equity benchmarks traded higher in today's deals, extending their gains for the third straight day. The domestic indices traded higher led by gains in metals, energy, consumer and automobile stocks.