Trading Volume and Price Action Overview
On the final trading day of 2025, Reliance Power recorded a total traded volume of 1.35 crore shares, translating to a traded value of approximately ₹4667.87 lakhs. This volume figure represents a significant spike compared to its recent averages, underscoring heightened investor interest. The stock opened at ₹34.00, touched an intraday high of ₹35.05, and closed at ₹34.60, marking a 2.76% increase from the previous close of ₹33.66.
In comparison, the power sector index gained a modest 0.21%, while the Sensex rose 0.17%, highlighting Reliance Power’s outperformance on a relative basis. The stock’s one-day return of 2.88% further emphasises its stronger momentum against broader market movements.
Technical and Trend Analysis
Despite the positive price movement, Reliance Power remains below its key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This suggests that the stock is still in a longer-term downtrend, and the recent gains may represent a short-term correction or a potential trend reversal in its early stages.
Notably, the stock has gained after three consecutive days of decline, signalling a possible shift in investor sentiment. The rising delivery volume, which surged by 121.98% to 5.55 crore shares on 30 Dec compared to the five-day average, indicates increased investor participation and accumulation. This heightened delivery volume is often interpreted as a sign of genuine buying interest rather than speculative trading.
Liquidity and Market Capitalisation Context
Reliance Power’s liquidity profile remains robust, with the stock capable of supporting trade sizes up to ₹5.7 crore based on 2% of its five-day average traded value. This liquidity is crucial for institutional investors and traders seeking to enter or exit positions without significant price impact.
The company is classified as a small-cap entity with a market capitalisation of ₹14,322.17 crore. Its Mojo Score stands at 34.0, reflecting a Sell rating, though this is an improvement from the previous Strong Sell grade assigned on 3 Nov 2025. The market cap grade is rated 3, indicating moderate size within its sector.
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Accumulation and Distribution Signals
The surge in delivery volume coupled with the price rebound after a short-term decline suggests accumulation by investors. However, the stock’s position below all major moving averages tempers enthusiasm, indicating that distribution phases may still be present at higher levels. Investors should closely monitor volume patterns in the coming sessions to confirm whether the accumulation trend sustains or if profit-taking pressures re-emerge.
Given the stock’s Sell Mojo Grade, caution is warranted. The upgrade from Strong Sell to Sell on 3 Nov 2025 reflects some improvement in fundamentals or market perception, but the overall outlook remains bearish. The power sector’s cyclical nature and Reliance Power’s specific operational challenges contribute to this cautious stance.
Sector and Market Comparison
Reliance Power’s outperformance relative to the power sector and Sensex on 31 Dec 2025 is notable, especially given the broader market’s subdued gains. This relative strength may attract short-term traders looking to capitalise on momentum. However, the stock’s longer-term downtrend and modest Mojo Score suggest that sustained gains will require positive catalysts such as improved earnings, regulatory clarity, or sector tailwinds.
Investors should also consider the company’s small-cap status, which can entail higher volatility and liquidity risks compared to larger peers. The market cap grade of 3 indicates that while the stock is not among the smallest, it still faces challenges typical of mid-sized companies in the power sector.
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Investor Takeaways and Outlook
Reliance Power’s exceptional trading volume and relative price strength on 31 Dec 2025 highlight renewed investor interest, possibly driven by short-term technical factors or speculative positioning. The stock’s recovery after a three-day decline and the sharp rise in delivery volume suggest that some investors are accumulating shares at current levels.
However, the broader technical context remains challenging. The stock’s position below all major moving averages and its modest Mojo Score of 34.0, with a Sell grade, indicate that the risk of further downside persists. Investors should weigh these factors carefully and consider the company’s fundamentals, sector dynamics, and market conditions before making investment decisions.
For traders, the stock’s liquidity and volume surge offer opportunities for short-term gains, but the absence of a confirmed trend reversal advises caution. Monitoring upcoming quarterly results, regulatory developments, and sector news will be critical to assessing whether Reliance Power can sustain its recent momentum or revert to its prior downtrend.
Conclusion
Reliance Power Ltd’s trading activity on 31 Dec 2025 underscores the importance of volume analysis in understanding market sentiment. While the stock’s volume surge and price rebound signal potential accumulation, the prevailing technical weaknesses and Sell rating suggest that investors should remain vigilant. A balanced approach, combining volume trends with fundamental analysis and sector outlook, will be essential for navigating this stock’s evolving landscape in the power sector.
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