Reliance Power Ltd Sees Exceptional Volume Surge Amid Mixed Technical Signals

Trading Volume and Price Action

On 9 Feb 2026, Reliance Power witnessed a total traded volume of 21,442,915 shares, translating to a traded value of approximately ₹60.23 crores. This volume is significantly above the stock’s five-day average, underscoring a surge in market participation. The stock opened at ₹28.50, touched a high of ₹28.50, and a low of ₹27.86, before settling at ₹28.27 as of 12:29 PM IST. This closing price represents a 1.82% increase from the previous close of ₹27.98.

In comparison, the Power sector declined by 0.11% on the same day, while the Sensex gained 0.54%, highlighting Reliance Power’s relative outperformance within its sector. The stock’s one-day return stood at 2.47%, outperforming the sector by 1.89%, signalling a positive short-term momentum despite broader sector weakness.

Technical and Trend Analysis

Reliance Power’s price currently trades above its five-day moving average but remains below its 20-day, 50-day, 100-day, and 200-day moving averages. This pattern suggests a short-term recovery following a recent downtrend, but the longer-term technical outlook remains subdued. The stock has gained after two consecutive days of decline, indicating a potential trend reversal in the near term.

However, investor participation appears to be waning. Delivery volume on 6 Feb was recorded at 89.27 lakh shares but has since fallen by 64.51% compared to the five-day average delivery volume. This decline in delivery volume suggests that while trading volumes are high, actual investor commitment to holding shares may be weakening, a classic sign of distribution rather than accumulation.

Market Capitalisation and Liquidity

Reliance Power is classified as a small-cap stock with a market capitalisation of ₹11,605 crores. Its liquidity profile is adequate for sizeable trades, with the stock’s traded value on 9 Feb supporting trade sizes up to ₹5.9 crores based on 2% of the five-day average traded value. This liquidity ensures that institutional investors can transact without significant market impact, although the stock’s Mojo Grade of Strong Sell and a low Mojo Score of 29.0 reflect underlying fundamental concerns.

Rating and Quality Assessment

MarketsMOJO downgraded Reliance Power’s Mojo Grade from Sell to Strong Sell on 3 Nov 2025, reflecting deteriorating fundamentals and a cautious outlook. The Mojo Score of 29.0 is indicative of weak financial health and poor growth prospects relative to peers in the Power sector. The company’s Market Cap Grade stands at 3, signalling a small-cap status with associated volatility and risk.

Investors should note that despite the recent volume surge and short-term price gains, the stock’s fundamental and technical indicators remain unfavourable. The combination of a strong sell rating and falling delivery volumes suggests that the recent buying interest may be speculative or short-lived rather than a sign of sustained accumulation.

Volume Surge Drivers and Market Sentiment

The exceptional trading volume in Reliance Power can be attributed to several factors. Firstly, the stock’s recent price dip followed by a modest rebound may have attracted short-term traders looking to capitalise on volatility. Secondly, the Power sector’s mixed performance and the company’s small-cap status often lead to episodic volume spikes driven by news flow or market speculation.

However, the lack of sustained delivery volume growth indicates that institutional investors may be cautious, preferring to reduce exposure rather than accumulate. This distribution pattern often precedes price corrections, especially in stocks with weak fundamental grades.

Comparative Sector and Market Context

Within the Power sector, Reliance Power’s outperformance on 9 Feb contrasts with the sector’s overall decline, highlighting its appeal to traders seeking volatility and potential short-term gains. Nonetheless, the broader market’s modest gain of 0.54% on the Sensex suggests a cautious environment, with investors favouring more stable large-cap stocks over small-cap power companies with uncertain outlooks.

Investor Takeaway

Reliance Power’s recent surge in trading volume and modest price appreciation present a complex picture for investors. While the stock’s liquidity and short-term momentum may appeal to traders, the underlying fundamental weakness and strong sell rating caution against long-term accumulation. The declining delivery volumes further reinforce the notion of distribution rather than genuine buying interest.

Investors should carefully weigh the risks associated with small-cap power stocks like Reliance Power, especially in a sector facing regulatory and demand uncertainties. Monitoring volume trends alongside technical indicators and fundamental scores remains essential for making informed decisions in such volatile stocks.

In summary, Reliance Power’s exceptional volume activity on 9 Feb 2026 reflects heightened market attention but does not yet signal a sustainable turnaround. The stock’s mixed technical signals and deteriorating quality grades suggest that investors should remain cautious and consider alternative opportunities within the sector or broader market.

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