Reliance Power Ltd Sees Exceptional Volume Surge Amid Mixed Technical Signals

Trading Volume and Price Action Overview

On 28 Jan 2026, Reliance Power witnessed a total traded volume of 2.05 crore shares, translating to a traded value of approximately ₹5829.5 lakhs. This volume represents a significant increase compared to its recent averages, with delivery volume on 27 Jan rising by 5.18% against the five-day average delivery volume, signalling heightened investor participation. The stock opened at ₹27.81, touched a day high of ₹28.90, and closed near the upper end at ₹28.40, up 3.06% from the previous close of ₹27.43.

In comparison, the power sector gained 2.07% and the Sensex rose by a modest 0.52% on the same day, underscoring Reliance Power’s outperformance relative to its peers and the broader market. The stock’s one-day return stood at 3.43%, outperforming the sector by 2.8%, a notable achievement given the sector’s recent volatility.

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 marks. This indicates that while short-term momentum has improved, the stock is still entrenched in a longer-term downtrend. The recent price gain follows two consecutive days of decline, suggesting a potential trend reversal or at least a short-term bounce.

Liquidity metrics further support the stock’s tradability, with the current liquidity allowing for trade sizes up to ₹3.35 crore based on 2% of the five-day average traded value. This level of liquidity is favourable for institutional and retail investors seeking to enter or exit positions without significant market impact.

Fundamental and Market Sentiment Context

Reliance Power is classified as a small-cap company with a market capitalisation of ₹11,733.18 crore. The company operates within the power industry, a sector that has faced headwinds due to regulatory challenges and fluctuating demand patterns. The MarketsMOJO Mojo Score for Reliance Power currently stands at 34.0, with a Mojo Grade of Sell, upgraded from a previous Strong Sell rating on 3 Nov 2025. This upgrade reflects some improvement in the company’s outlook, though the overall sentiment remains cautious.

Volume Surge Drivers and Accumulation/Distribution Signals

The surge in volume for Reliance Power can be attributed to a combination of factors including renewed investor interest following the recent downgrade upgrade in Mojo Grade, and the stock’s relative outperformance within the power sector. The increase in delivery volume suggests genuine accumulation rather than speculative intraday trading, which is a positive sign for medium-term investors.

However, the stock’s position below all major moving averages tempers enthusiasm, indicating that the broader trend remains bearish. The accumulation/distribution indicator, while not explicitly quantified here, is likely reflecting mixed signals given the volume spike amid a still subdued price trend. Investors should monitor whether the volume surge translates into sustained buying pressure or if it represents a short-lived relief rally.

Comparative Sector and Market Positioning

Within the power sector, Reliance Power’s performance stands out on the day, but it remains a small-cap player with a Market Cap Grade of 3, signalling moderate market capitalisation relative to peers. The sector itself is navigating challenges such as regulatory reforms, fuel price volatility, and demand fluctuations, which impact stock valuations and investor sentiment.

Reliance Power’s recent upgrade from Strong Sell to Sell by MarketsMOJO reflects a cautious optimism but also highlights the need for investors to weigh risks carefully. The company’s fundamentals and technicals suggest that while there is potential for recovery, significant headwinds remain.

Investor Takeaways and Outlook

For investors, the key takeaway from Reliance Power’s recent trading activity is the notable increase in volume accompanied by a modest price gain, signalling renewed interest but not yet a definitive trend reversal. The stock’s position below all major moving averages suggests that caution is warranted, and investors should look for confirmation of sustained buying before committing significant capital.

Given the company’s small-cap status and the power sector’s inherent volatility, Reliance Power may appeal to risk-tolerant investors seeking value plays with potential for rebound. However, the current Mojo Grade of Sell and a modest Mojo Score of 34.0 indicate that the stock is not yet a strong buy candidate.

Monitoring upcoming quarterly results, regulatory developments, and sectoral trends will be crucial in assessing whether Reliance Power can build on its recent volume surge and translate it into a sustained upward trajectory.

Summary

Reliance Power Ltd’s exceptional trading volume on 28 Jan 2026 highlights increased investor engagement amid a challenging sector backdrop. While the stock outperformed the power sector and Sensex on the day, technical indicators remain mixed, with the stock trading below key moving averages despite a short-term price rebound. The upgrade in Mojo Grade from Strong Sell to Sell reflects some improvement but maintains a cautious stance. Investors should weigh the volume surge against the broader downtrend and consider alternative opportunities within the sector.

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