Reliance Power Ltd Sees Exceptional Volume Surge Amid Mixed Technical Signals

High Volume Trading Activity Highlights Investor Interest

On 18 Feb 2026, Reliance Power Ltd recorded a total traded volume of 7,332,437 shares, translating to a traded value of approximately ₹2,028.15 lakhs. This volume figure stands out prominently against the stock’s recent averages, reflecting heightened investor participation. The delivery volume on the previous trading day, 17 Feb, was 1.21 crore shares, marking a 9.11% increase compared to the five-day average delivery volume. Such a rise in delivery volume often signals genuine investor interest rather than speculative intraday trading.

The stock opened at ₹27.33, matching the previous close, and touched an intraday high of ₹27.90 before settling at ₹27.82 by 09:43 IST. This intraday price movement, combined with the volume surge, indicates a positive sentiment among traders, albeit within a relatively narrow price band.

Outperformance Against Sector and Market Benchmarks

Reliance Power’s 1.79% one-day return notably outpaced the Power sector’s marginal decline of 0.03% and the Sensex’s modest 0.03% gain on the same day. This relative strength is significant given the stock’s classification as a small-cap entity with a market capitalisation of ₹11,505.71 crores. The stock has also recorded gains over the past two consecutive days, delivering a cumulative return of 4.35%, suggesting a short-term bullish trend.

However, the stock’s price remains below its 20-day, 50-day, 100-day, and 200-day moving averages, despite trading above the 5-day moving average. This technical positioning implies that while short-term momentum is positive, medium- to long-term trends remain subdued, reflecting lingering bearish pressures or consolidation phases.

Mojo Score and Grade Reflect Caution

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 in sentiment underscores concerns about the company’s fundamentals and technical outlook despite recent volume and price activity. The market cap grade stands at 3, indicating a small-cap status with inherent volatility and risk factors.

Investors should weigh these ratings carefully, as the strong sell grade suggests that the stock may face downward pressures in the near term, even as short-term trading volumes and price gains hint at potential accumulation.

Liquidity and Trading Size Considerations

Reliance Power’s liquidity profile supports trading sizes up to ₹1.68 crores based on 2% of the five-day average traded value. This level of liquidity is adequate for institutional and retail investors seeking to enter or exit positions without significant market impact. The stock’s rising delivery volume further confirms that genuine investors are participating, which could stabilise price movements if sustained.

Technical Indicators and Investor Sentiment

The stock’s position above the 5-day moving average but below longer-term averages suggests a tentative recovery phase. The two-day consecutive gains and 4.35% return over this period indicate short-term bullishness, possibly driven by positive news flow or sectoral developments. However, the inability to breach longer-term moving averages points to resistance levels that may cap upside potential.

Volume surges often precede significant price moves, either upward or downward, depending on whether accumulation or distribution dominates. In Reliance Power’s case, the increased delivery volume and outperformance relative to the sector hint at accumulation by informed investors. Yet, the strong sell Mojo Grade tempers enthusiasm, signalling that caution remains warranted.

Sectoral Context and Market Environment

The Power sector has been relatively flat, with a slight decline of 0.03% on the day, reflecting mixed investor sentiment amid ongoing regulatory and demand-side challenges. Reliance Power’s outperformance against this backdrop is noteworthy, suggesting company-specific factors are driving interest. However, the broader sector’s subdued performance may limit sustained gains unless accompanied by positive fundamental developments.

Investment Outlook and Considerations

For investors considering Reliance Power, the current trading activity presents a mixed picture. The surge in volume and short-term price gains suggest renewed interest and potential accumulation. However, the stock’s technical positioning below key moving averages and the strong sell Mojo Grade highlight underlying risks and cautionary signals.

Given the stock’s small-cap status and liquidity profile, it remains susceptible to volatility. Investors should monitor upcoming corporate announcements, sectoral developments, and broader market trends to better gauge the sustainability of the recent momentum.

In addition, the divergence between short-term bullish signals and longer-term bearish indicators calls for a balanced approach, possibly favouring tactical trading over long-term buy-and-hold strategies until clearer trends emerge.

Conclusion

Reliance Power Ltd’s exceptional volume surge on 18 Feb 2026 underscores heightened investor interest amid a complex technical backdrop. While short-term gains and rising delivery volumes point to accumulation, the stock’s overall rating and technical metrics counsel prudence. Investors should carefully analyse evolving market conditions and consider alternative opportunities within the Power sector and beyond to optimise portfolio performance.

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