Reliance Power Ltd Sees Exceptional Volume Surge Amid Mixed Technical Signals

Volume Explosion and Price Action

On 10 Feb 2026, Reliance Power Ltd witnessed a total traded volume of 1.08 crore shares, translating to a traded value of approximately ₹31.51 crores. This volume spike is significant compared to its recent averages and positions the stock among the highest volume gainers in the power sector. The stock opened at ₹28.50, touched a day high of ₹29.45, and closed near ₹29.17, marking a 2.18% increase from the previous close of ₹28.43.

The intraday price movement indicates robust buying interest, with the stock outperforming its sector by 2.38% and the Sensex by 1.86% on the day. Notably, Reliance Power has recorded gains over the last two consecutive sessions, accumulating a 4.07% return during this period, signalling short-term bullish momentum.

Technical Indicators and Moving Averages

Despite the recent uptick, the stock remains below its longer-term moving averages, including the 20-day, 50-day, 100-day, and 200-day averages. It currently trades above the 5-day moving average, suggesting some near-term strength but also highlighting resistance levels that may cap further upside without sustained buying pressure.

Investor participation, however, shows signs of waning. Delivery volume on 9 Feb 2026 was 1.11 crore shares but declined sharply by 53.14% compared to the five-day average delivery volume. This drop in delivery volume could indicate reduced conviction among long-term holders, raising questions about the sustainability of the recent rally.

Liquidity and Market Capitalisation Context

Reliance Power’s market capitalisation stands at ₹12,076.45 crores, categorising it as a small-cap stock within the power sector. The stock’s liquidity is adequate for sizeable trades, with a 2% threshold of the five-day average traded value allowing for trade sizes up to ₹5.78 crores without significant market impact. This liquidity profile supports active trading but also means the stock can be susceptible to volatility on large volume spikes.

Fundamental Assessment and Mojo Score

MarketsMOJO assigns Reliance Power a Mojo Score of 29.0, categorising it with a Strong Sell grade as of 3 Nov 2025, an upgrade from the previous Sell rating. This downgrade reflects deteriorating fundamentals and risk factors that outweigh the recent price gains. The company’s market cap grade is a modest 3, indicating limited scale compared to larger peers in the power sector.

The Strong Sell rating is driven by concerns over earnings quality, debt levels, and sector headwinds that continue to challenge Reliance Power’s growth prospects. Investors should weigh these fundamental weaknesses against the short-term technical strength before making allocation decisions.

Accumulation and Distribution Signals

While the surge in volume suggests active accumulation, the sharp decline in delivery volumes hints at distribution by some investors. This mixed signal is typical in volatile small-cap stocks where speculative trading can temporarily inflate volumes and prices. The stock’s outperformance relative to the sector and Sensex on 10 Feb 2026 may attract momentum traders, but the underlying fundamentals caution against complacency.

Technical analysts will note that the stock’s inability to break above longer-term moving averages could act as resistance, potentially triggering profit-taking if broader market sentiment weakens. Conversely, sustained volume above average levels could signal a genuine shift in investor sentiment if accompanied by improving fundamentals.

Sector and Market Comparison

The power sector has shown modest gains recently, with the sector index rising 0.13% on the same day Reliance Power gained 2.71%. The Sensex itself advanced 0.32%, underscoring Reliance Power’s relative outperformance. However, this outperformance is occurring against a backdrop of cautious investor sentiment towards power stocks, which face regulatory and demand uncertainties.

Investors should consider the broader sector dynamics, including fuel price volatility, government policy changes, and infrastructure investments, which will influence Reliance Power’s medium-term trajectory.

Investor Takeaway

Reliance Power Ltd’s recent volume surge and price appreciation present an intriguing but cautious opportunity. The stock’s liquidity and active trading make it attractive for short-term traders seeking momentum plays. However, the fundamental backdrop, reflected in a Strong Sell Mojo Grade and modest market cap, advises prudence.

Investors should monitor delivery volumes and moving average trends closely to gauge whether accumulation is genuine or if distribution is underway. Given the mixed signals, a balanced approach combining technical analysis with fundamental scrutiny is essential before committing capital.

In the context of the broader power sector and market environment, Reliance Power’s performance is notable but not definitive of a turnaround. Market participants would be well advised to consider alternative power stocks with stronger fundamentals and more favourable technical setups.

Conclusion

Reliance Power Ltd’s exceptional trading volume on 10 Feb 2026 underscores heightened market interest but also highlights the complexities of investing in small-cap power stocks. While short-term gains have been recorded, the stock’s fundamental challenges and mixed technical signals suggest that investors should remain vigilant and selective. The evolving market dynamics will determine whether this volume surge marks the beginning of sustained accumulation or a transient spike driven by speculative activity.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →