High Volume Trading Activity Highlights Market Interest
On 4 Feb 2026, Reliance Power Ltd witnessed a total traded volume of 1,48,71,254 shares, translating to a traded value of approximately ₹42.59 crores. This volume places RPOWER among the top equity performers by volume on the day, signalling heightened market interest. The stock opened at ₹27.96, touched a day low of ₹27.68, and surged to a day high of ₹29.65 before settling near the high at ₹29.61 as of 09:44:47 IST. This intraday volatility of 7.26% underscores the dynamic trading environment surrounding the stock.
Comparatively, the stock outperformed its sector by 0.45% and the broader Sensex by 6.92% on the day, with a 1-day return of 4.15% against the sector’s 1.27% and Sensex’s 0.23%. This relative outperformance, coupled with the volume spike, suggests that traders are actively positioning themselves in Reliance Power amid evolving market conditions.
Technical and Trend Analysis: Mixed Signals
Despite the strong intraday gains, the stock’s moving averages paint a nuanced picture. The last traded price (LTP) of ₹29.61 is above the 5-day moving average but remains below the 20-day, 50-day, 100-day, and 200-day moving averages. This indicates that while short-term momentum is positive, the stock has yet to break through longer-term resistance levels, which may temper enthusiasm among longer-term investors.
Additionally, delivery volume on 3 Feb 2026 was 1.64 crore shares, representing a 14.9% decline against the 5-day average delivery volume. This falling investor participation in delivery volumes suggests that while trading volumes are high, actual accumulation by investors may be waning, potentially signalling distribution or short-term speculative activity rather than sustained buying interest.
Fundamental Assessment and Mojo Score
Reliance Power’s current Market Capitalisation stands at ₹12,134.35 crores, categorising it as a small-cap stock within the power sector. The company’s Mojo Score, a comprehensive metric assessing financial health, price momentum, and quality, remains low at 29.0, with a Mojo Grade of Strong Sell as of 3 Nov 2025. This represents a downgrade from the previous Sell rating, reflecting deteriorating fundamentals or negative market sentiment.
The Market Cap Grade is rated 3, indicating moderate size but not enough to offset concerns raised by the Mojo Grade. Investors should weigh these fundamental signals carefully against the recent volume and price action to avoid being caught in short-term volatility without underlying strength.
This week's revealed pick, a Large Cap from Public Banks with TARGET PRICE, is already showing movement! Get the complete analysis before it's too late.
- - Target price included
- - Early movement detected
- - Complete analysis ready
Volume Profile and Price Action Insights
The weighted average price for the day indicates that more volume was traded closer to the low price, suggesting that buyers were active at lower levels, potentially absorbing selling pressure. This volume profile can be interpreted as accumulation by short-term traders, although the falling delivery volumes complicate this narrative.
Reliance Power has recorded gains for two consecutive days, delivering a cumulative return of 6.52% over this period. This short-term rally may be driven by speculative interest or news flow, but the stock’s inability to surpass longer-term moving averages signals resistance ahead.
Liquidity and Trading Considerations
The stock’s liquidity is adequate for sizeable trades, with a 5-day average traded value supporting trade sizes up to ₹2.74 crores based on 2% of average daily traded value. This liquidity facilitates active trading without excessive price impact, attracting both institutional and retail participants.
However, investors should remain cautious given the high intraday volatility and mixed technical signals. The stock’s strong intraday moves could present trading opportunities for short-term traders but may pose risks for longer-term investors seeking stability.
Why settle for Reliance Power Ltd? SwitchER evaluates this Power small-cap against peers, other sectors, and market caps to find you superior investment opportunities!
- - Comprehensive evaluation done
- - Superior opportunities identified
- - Smart switching enabled
Contextualising Reliance Power’s Performance Within the Power Sector
The power sector has experienced moderate gains recently, with the sector index rising 1.27% on 4 Feb 2026. Reliance Power’s outperformance relative to the sector suggests selective interest, possibly driven by company-specific developments or technical factors. However, the broader sector’s steady but unspectacular performance highlights the challenges facing power companies amid regulatory and demand uncertainties.
Investors should also consider the company’s small-cap status, which typically entails higher volatility and risk compared to larger, more established peers. The Mojo Grade downgrade to Strong Sell further emphasises the need for caution, as it reflects underlying weaknesses in financial or operational metrics.
Accumulation vs Distribution: What the Volume Tells Us
While the surge in traded volume and price gains might suggest accumulation, the decline in delivery volumes indicates a potential distribution phase. Delivery volume measures shares actually taken into investors’ demat accounts, signalling genuine buying interest. The 14.9% drop in delivery volume compared to the 5-day average suggests that a significant portion of the volume may be intraday or speculative trades rather than long-term accumulation.
This divergence between volume and delivery volume is a critical signal for investors. It implies that while the stock is actively traded, the underlying investor conviction may be weak, increasing the risk of a reversal once speculative interest wanes.
Conclusion: A Stock for Traders, Not Yet for Investors
Reliance Power Ltd’s exceptional volume and price action on 4 Feb 2026 highlight its appeal to traders capitalising on short-term volatility. However, the mixed technical signals, falling delivery volumes, and a Strong Sell Mojo Grade caution against a bullish stance for long-term investors.
Market participants should closely monitor the stock’s ability to break above key moving averages and watch for sustained increases in delivery volumes as confirmation of genuine accumulation. Until then, Reliance Power remains a high-risk, high-volatility stock better suited for tactical trading rather than strategic investment.
Investors seeking more stable opportunities within the power sector or across market caps may benefit from comparative evaluations and switching strategies to optimise their portfolios.
Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →
