Anil Ambani’s company Reliance Power (NSE : RPOWER) finally hits a new short term high after almost 5 years. The shares made a high of Rs. 33.15 which is higher than its previous high of year 2019 of Rs. 30.70
This is after Finance Minister announced 50% more allocation of nearly Rs 28,352 crore to renewable energy power sector in the interim budget.
Almost all power sector stocks like RPOWER saw a bullish momentum after this announcement. In year 2008, Reliance Power was trading at price of Rs. 331, and now its trading at a discount of almost 91%. Currently RPOWER is trading at Rs. 27.50 per share as on February 9th.
About RPOWER
Reliance Power is listed on NSE and BSE (ticker : RPOWER) . The company is headquartered in Mumbai, India and is part of the Reliance Group conglomerate owned by Anil Ambani.
Reliance Power was established in 2007 to develop, construct, operate, and maintain power projects in the domestic and international markets. The company deals in power generation and power transmission like Solar Power, Wind Power, Thermal Power etc.
Some key facts about Reliance Power
- RPOWER operates portfolio of power projects across India
- Uses coal, gas, hydro and renewable energy sources
- Has total generation capacity of about 5,945 megawatts
- Key projects include Sasan ultra mega power project and Samalkot power project
Resons behind rise in shares of RPOWER
The budget has some good news for companies like RPOWER that work on solar power projects.
More people will be interested in installing solar panels on their rooftops because of the free electricity benefit announced. So there will be higher demand for RPOWER’s installation and maintenance services for rooftop solar.
Indian government is also Incentivizing green energy to support offshore wind projects. This is good for the whole renewable energy industry. This will create even more opportunities for RPOWER to expand their business in the future.
RPOWER will also be benefited as the government decides to investing in transmission lines and distribution systems. This will make power supply more efficient and accessible, allowing companies like RPOWER to connect their solar projects to the grid and supply electricity efficiently.
Reliance Power technical analysis.
RPOWER has broken its previous high of Rs 25 with a strong bullish candle and now trading above this level. From its high, the price has now retraced by nearly 23% or about Rs. 8.
Major swings for Reliance Power are ₹21.25 and ₹16. Important to note that the stock is now making higher high on daily timeframe. This is sign of billish structure formation.
For short term, level ₹24 and ₹22 will act as good support levels. Any time RPOWER retraces back to these levels, a good demand can be expected which will again raise its share price.
Investors looking to capitalise on Reliance Power for short term gains can use these levels as buying levels with 6-10% of profit expectations.
Now that we are at the end of this article, as investors, it is important to keep a track of RPOWER’s financials from time to time as financials will matter the most in long run.
We have marked important supports and resistances for long term investors for Reliance Power which may also act as its forecast till year 2025
