By tnsh20@gmail.com 
Reliance Power:
Reliance Power, a company owned by Anil Ambani, has seen a significant surge in its stock price over the past eight trading days. This upward trend began after the company announced its role as a guarantor for Vidarbha Industries Power Limited’s (VIPL) debt settlement. Following this announcement, Reliance Power shares broke out from a period of consolidation and started hitting their daily price limits.
The stock’s momentum further accelerated when the company’s board of directors announced a meeting to discuss and approve long-term fundraising plans. Since September 18, 2024, Reliance Power shares have consistently reached their daily price limits, resulting in an impressive 50% increase in value during this period.
Reliance Power announced on September 17, 2024 that it has fully settled all obligations as guarantor for Vidarbha Industries Power Limited (VIPL)’s debt. This settlement resulted in the release of all corporate guarantees, undertakings, and claims related to VIPL’s outstanding debt of ₹3872.04 Crore. Reliance Power has resolved all disputes with CFM Asset Reconstruction Private Limited (CFM) and has received 100% of VIPL’s shares as collateral for the release of the corporate guarantee.”
Since Reliance Power became debt-free on a standalone basis, its shares have attracted attention from Dalal Street investors. However, the stock suffered a setback after SEBI banned Anil Ambani from the securities markets. Nevertheless, the company is gradually reducing its debt and has recently announced that it will settle all its outstanding debt with CFM,” stated Avinash Gorakshkar, Head of Research at Profitmart Securities.”
“Sumeet Bagadia, Executive Director at Choice Broking, commented on the technical outlook for Reliance Power shares, stating, “Reliance Power’s share price is currently trading at ₹46.35, which is a new long-term high. The stock has consistently shown higher highs and higher lows in recent months, indicating a strong bullish trend. The recent increase in trading volume further reinforces this upward momentum. It is advisable to buy on dips, with a target price range of ₹58 to ₹62, which offers an attractive risk-reward ratio for investors.””
Regarding advice for investors considering Reliance Power shares, Bagadia suggested, “Investors who bought at lower prices might want to take some profits at the current market level. For new investors, a disciplined approach would be to wait for potential dips. Additionally, placing trailing stop-loss orders near ₹40 can help protect profits and manage risks effectively.
Disclaimer: 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.
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