Reliance Power Ltd Falls 0.99% Amid Mixed Signals and Strong Sell Rating

2 February 2026: Fresh 52-Week Low Amid Heavy Trading

Reliance Power Ltd’s stock price plunged to a new 52-week low of Rs.26.44 on 2 February 2026, marking a continuation of its downward trend. The stock closed at Rs.26.83, down 5.06% on the day, significantly underperforming the Sensex’s 1.03% decline. Despite the price drop, the stock saw exceptional trading volume of over 8.3 million shares, indicating heightened market attention but predominantly selling pressure.

Technical indicators remained bearish, with the stock trading below all major moving averages, signalling sustained weakness. Institutional investors reduced holdings by 0.52% in the previous quarter, reflecting cautious sentiment. The company’s Mojo Score stood at 29.0 with a Strong Sell grade, underscoring fundamental challenges despite some recent positive quarterly results.

3 February 2026: Volume Surge Supports Price Recovery

On 3 February, Reliance Power rebounded with a 5.03% gain, closing at Rs.28.18, outperforming the Sensex’s 2.63% rise. The stock was among the most actively traded, with volume surging to 19.3 million shares and delivery volume increasing by 8.14%, suggesting some accumulation amid mixed technical signals.

Despite the short-term recovery, the stock remained below key moving averages, indicating that the broader downtrend was intact. The power sector also gained 3.07%, but Reliance Power’s outperformance by 0.54% hinted at selective investor interest possibly driven by speculative repositioning.

4 February 2026: Intraday High and Strong Price Surge

Reliance Power recorded a robust intraday performance on 4 February, surging 7.56% to an intraday high of Rs.30.74. The stock closed at Rs.28.96, outperforming the Sensex’s marginal 0.10% gain and the power sector’s 1.27% rise. Volume remained elevated at nearly 15 million shares, reflecting active trading and volatility.

Technically, the stock traded above its 5-day moving average for the first time in the week, signalling short-term momentum. However, it remained below longer-term averages, indicating that the broader bearish trend was not yet reversed. The Mojo Grade remained at Strong Sell, reflecting ongoing fundamental concerns despite the price rally.

Over the last two trading days, the stock accumulated a 12.11% return, yet its one-month and three-month returns remained deeply negative at -15.39% and -25.32% respectively, highlighting persistent medium-term challenges.

5 February 2026: Price Decline Despite Exceptional Volume

On 5 February, Reliance Power’s price retreated by 2.11% to close at Rs.28.13, underperforming both the power sector’s 0.77% decline and the Sensex’s 0.47% fall. The stock remained above its 5-day moving average but below all other key averages, indicating fragile short-term strength amid longer-term weakness.

Trading volume remained high at 13.8 million shares, with delivery volume spiking by 188.65% the previous day, suggesting genuine investor participation. However, the price decline amid heavy volume pointed to possible profit booking or distribution by short-term traders. The Mojo Score and Strong Sell rating continued to caution investors about the stock’s outlook.

6 February 2026: Continued Downtrend and Strong Sell Confirmation

Reliance Power closed the week on a weak note, falling 0.53% to Rs.27.98 on 6 February, extending a two-day decline of 5.04%. The stock underperformed the power sector’s 0.30% decline and the Sensex’s 0.41% fall. Trading volume remained elevated at 7.5 million shares, but delivery volumes declined by 25.36%, indicating reduced long-term investor participation.

Technical indicators remained firmly bearish, with the stock trading below all major moving averages. The recent downgrade to a Strong Sell rating by MarketsMOJO on 3 November 2025 continued to weigh on sentiment, reflecting deteriorating fundamentals and limited near-term support.

The divergence between high traded volume and falling delivery volumes suggests speculative trading rather than sustained accumulation, signalling potential for further downside unless positive catalysts emerge.

Key Takeaways

Reliance Power Ltd’s week was characterised by significant volatility and heavy trading volumes, reflecting a market grappling with mixed signals. The stock’s 0.99% weekly decline contrasted with the Sensex’s 1.51% gain, highlighting company-specific challenges amid broader market resilience.

Notable was the fresh 52-week low on 2 February and the strong intraday rally on 4 February, which demonstrated short-term momentum but failed to reverse the prevailing downtrend. The persistent trading below key moving averages and the Strong Sell mojo grade underscore ongoing fundamental and technical weaknesses.

Volume patterns suggest a complex interplay between speculative trading and tentative accumulation, with delivery volumes fluctuating and often declining despite high turnover. This dynamic points to cautious investor behaviour, with profit booking and distribution likely offsetting any buying interest.

Overall, the stock remains vulnerable to further downside pressure unless supported by improved fundamentals or a sustained technical breakout. The divergence between short-term price rallies and longer-term bearish trends warrants close monitoring in the coming weeks.

Conclusion

Reliance Power Ltd’s trading activity during the week ending 6 February 2026 paints a picture of a stock under pressure amid mixed market signals. Despite moments of strong volume and price recovery, the stock closed the week lower, underperforming the broader market and power sector. The recent downgrade to a Strong Sell rating by MarketsMOJO reflects ongoing concerns about the company’s fundamentals and technical outlook.

Investors should remain cautious, recognising the potential for short-term volatility and trading opportunities while acknowledging the risks posed by the stock’s sustained downtrend and weak delivery volumes. Monitoring sector developments, volume-price relationships, and moving average crossovers will be essential to gauge any shift in the stock’s trajectory.

Unlock special upgrade rates for a limited period. Start Saving Now →