Trading Activity and Price Movement
On 9 Jan 2026, Reliance Power recorded a total traded volume of 1,27,68,134 shares, translating to a traded value of approximately ₹43.65 crores. The stock opened at ₹34.24, touched an intraday high of ₹34.69, and a low of ₹33.70 before settling near ₹34.38 at the last update time of 10:38:56 IST. This represents a marginal day change of -0.47%, indicating a slight retreat from the previous close of ₹34.34.
While the sector’s one-day return was negative at -0.23% and the Sensex declined by -0.12%, Reliance Power’s performance was relatively inline with the broader power sector, showing a modest 0.26% return on the day. However, this masks a more concerning trend over recent sessions.
Recent Price Trends and Moving Averages
Reliance Power has been on a losing streak, with the stock declining for four consecutive days, resulting in a cumulative loss of -4.21% over this period. The stock is currently trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained bearish momentum. This technical positioning suggests that short-term and long-term investor confidence remains subdued.
The consistent underperformance relative to moving averages often acts as a deterrent for fresh buying, especially among institutional investors who rely on these indicators for entry and exit decisions.
Volume Surge and Investor Participation
The surge in volume is notable given the backdrop of falling investor participation. Delivery volume on 8 Jan 2026 stood at 76.64 lakh shares, which is a significant 30.97% decline compared to the five-day average delivery volume. This divergence between high traded volume and declining delivery volume suggests increased speculative trading or intraday activity rather than sustained accumulation by long-term investors.
Such patterns often indicate distribution phases, where shares are actively traded but not necessarily held for the long term. This is consistent with the stock’s Mojo Score of 34.0 and a Mojo Grade of Sell, which was downgraded from Strong Sell on 3 Nov 2025. The downgrade reflects deteriorating fundamentals or technical outlook as assessed by MarketsMOJO’s proprietary scoring system.
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Liquidity and Market Capitalisation
Reliance Power is classified as a small-cap stock with a market capitalisation of approximately ₹14,239.46 crores. Despite its size, the stock exhibits sufficient liquidity, with the ability to handle trade sizes up to ₹2 crores based on 2% of the five-day average traded value. This liquidity level supports active trading and allows institutional investors to enter or exit positions without significant price impact.
However, the relatively low Market Cap Grade of 3 further underscores the stock’s modest standing in terms of market size and investor appeal compared to larger peers in the power sector.
Technical Signals and Accumulation/Distribution Analysis
The combination of high volume and declining prices typically signals distribution, where sellers dominate despite active trading. The falling delivery volume corroborates this interpretation, suggesting that a significant portion of the volume is driven by short-term traders rather than genuine accumulation.
Moreover, the stock’s persistent trading below all major moving averages indicates weak technical support and a lack of bullish momentum. Investors should be cautious, as these signals often precede further downside or prolonged consolidation phases.
Given the current Mojo Grade of Sell and the recent downgrade from Strong Sell, the fundamental and technical outlook remains negative. This is a critical consideration for investors evaluating entry points or portfolio adjustments.
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Sector Context and Comparative Performance
The power sector has been under pressure recently, with the sector index declining by -0.23% on the day. Reliance Power’s performance, while slightly better on a one-day basis, has not been sufficient to reverse the negative trend. The stock’s ongoing weakness relative to the Sensex and sector benchmarks highlights the challenges faced by small-cap power companies amid evolving market conditions.
Investors should consider the broader sector dynamics, including regulatory changes, fuel price volatility, and demand fluctuations, which can significantly impact power companies’ earnings and valuations.
Outlook and Investor Considerations
Given the current technical and fundamental indicators, Reliance Power appears to be in a consolidation or distribution phase rather than accumulation. The high volume trading activity, while notable, does not yet signal a reversal or strong buying interest from long-term investors.
Investors should monitor key support levels and volume patterns closely. A sustained increase in delivery volume coupled with price stabilisation above moving averages would be required to signal a potential turnaround. Until then, caution is warranted, especially given the stock’s Sell rating and recent downgrade.
For those seeking exposure to the power sector, evaluating alternative stocks with stronger fundamentals and momentum may be prudent.
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