Trading Volume and Price Action
On 27 Jan 2026, Reliance Power recorded a total traded volume of 18,548,932 shares, translating to a traded value of approximately ₹50.88 crores. This volume spike is significant given the stock’s market capitalisation of ₹11,381.64 crores, categorising it as a small-cap entity within the power sector. The stock opened at ₹28.00, touched an intraday high of ₹28.50, but succumbed to selling pressure to close near its day low at ₹27.44, down 2.40% from the previous close of ₹28.27.
The stock’s price action was marked by a new 52-week low of ₹26.83, signalling persistent weakness. Over the past two trading sessions, Reliance Power has declined by 8.48%, a notable underperformance compared to the power sector’s modest gain of 0.59% and the Sensex’s 0.37% rise on the same day.
Technical Indicators and Moving Averages
Reliance Power’s technical setup remains bearish. The stock is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — indicating sustained downward momentum. This alignment of moving averages suggests that short-term, medium-term, and long-term trends are all negative, which may deter fresh buying interest.
Additionally, the stock’s delivery volume on 23 Jan 2026 was 2.2 crore shares, representing an 18.44% increase over the five-day average delivery volume. This rise in delivery volume points to heightened investor participation, but the accompanying price decline suggests that the increased activity is dominated by selling rather than accumulation.
Liquidity and Market Impact
Liquidity remains adequate for Reliance Power, with the stock’s traded value representing about 2% of its five-day average traded value. This liquidity level supports trade sizes up to ₹3.12 crores without significant market impact, making it accessible for institutional and retail investors alike. However, the persistent price weakness amid high volumes raises concerns about distribution rather than accumulation.
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Mojo Score and Analyst Ratings
Reliance Power’s current Mojo Score stands at 34.0, reflecting a Sell rating. This marks an improvement from its previous Strong Sell grade, which was downgraded on 3 Nov 2025. Despite this slight upgrade, the stock remains firmly in the sell territory, signalling caution for investors. The Market Cap Grade is 3, consistent with its small-cap status, indicating moderate market capitalisation relative to peers.
The downgrade from Strong Sell to Sell suggests some stabilisation in fundamentals or valuation, but the overall outlook remains negative. Investors should note that the stock’s underperformance relative to the sector and benchmark indices, combined with its technical weakness, limits near-term upside potential.
Sectoral Context and Comparative Performance
The power sector has shown resilience with a 0.59% gain on the day, buoyed by select stocks benefiting from favourable policy announcements and improving demand outlook. Reliance Power’s underperformance by 2.85% relative to its sector peers highlights company-specific challenges, possibly linked to operational issues, financial stress, or market sentiment.
Given the sector’s mixed performance, Reliance Power’s heavy volume and price decline may reflect profit booking or exit by investors wary of its fundamentals. The stock’s failure to hold above key support levels and its breach of the 52-week low reinforce the bearish narrative.
Accumulation vs Distribution Signals
High volume trading often signals either accumulation by buyers or distribution by sellers. In Reliance Power’s case, the combination of rising delivery volumes and falling prices points towards distribution. This suggests that investors are offloading shares despite increased market participation, a bearish sign that could presage further declines.
Market participants should monitor subsequent sessions for confirmation. If volumes remain elevated with continued price weakness, it would reinforce the distribution thesis. Conversely, a volume spike accompanied by price recovery could indicate a potential bottoming process, though current indicators do not support this scenario.
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Investor Takeaway and Outlook
Reliance Power’s recent trading activity underscores a challenging phase for the stock. The exceptional volume surge, while indicative of strong investor interest, has coincided with price declines and technical weakness. The downgrade in Mojo Grade from Strong Sell to Sell offers a marginally less negative outlook but does not signal a turnaround.
Investors should exercise caution and consider the stock’s relative underperformance within the power sector. The persistent breach of key moving averages and the new 52-week low suggest that downside risks remain elevated. Those holding the stock may want to reassess their positions in light of the distribution signals and explore alternative investments within the sector or broader market.
Meanwhile, traders might find opportunities in the stock’s liquidity and volatility, but only with strict risk management given the prevailing bearish momentum.
Market Context and Broader Implications
The power sector continues to be a focal point for investors due to evolving energy policies and infrastructure investments. However, Reliance Power’s struggles highlight the divergence within the sector, where some companies benefit from structural tailwinds while others face operational or financial headwinds. This divergence emphasises the importance of stock-specific analysis rather than sectoral generalisations.
As the market navigates macroeconomic uncertainties and sectoral shifts, Reliance Power’s volume surge and price action serve as a cautionary tale about the risks of investing in small-cap power stocks without thorough due diligence.
Summary
In summary, Reliance Power Ltd’s exceptional trading volume on 27 Jan 2026 was accompanied by a continued downtrend, hitting a new 52-week low and underperforming its sector and benchmark indices. Technical indicators remain bearish, and increased delivery volumes suggest distribution rather than accumulation. The stock’s Mojo Score of 34.0 and Sell rating reinforce the cautious outlook. Investors should monitor developments closely and consider alternative options within the power sector.
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