Reliance Power Faces Intense Selling Pressure Amid Significant Price Declines

Reliance Power Ltd is currently facing significant selling pressure, with the stock showing only sellers today. The stock has experienced a notable decline of 4.77% in a single day, contrasting sharply with the Sensex, which has gained 0.34%. Over the past week, Reliance Power has lost 11.49%, while the Sensex remained nearly flat with a decrease of just 0.02%.
In the last month, the stock has plummeted by 27.85%, compared to the Sensex's decline of 3.07%. This trend of consecutive losses is alarming, as Reliance Power has now seen four consecutive days of declines, totaling a drop of 15.17% during this period. The stock opened today at Rs 47.7, reflecting a gap down, and reached an intraday low of the same price, indicating a lack of upward momentum.

Despite its strong performance over longer periods, such as a 260.27% increase over three years, the recent downturn raises questions about the factors contributing to this selling pressure. The stock's current price is above its 200-day moving average but below its shorter-term moving averages, suggesting a shift in market sentiment.