Reliance Power Ltd Sees Heavy Trading Amid Continued Downtrend and Rising Investor Activity

Trading Activity and Price Movement

On 19 Jan 2026, Reliance Power opened at ₹31.98 and witnessed a day high of ₹32.14 before slipping to a low of ₹31.35. The last traded price (LTP) stood at ₹31.40 as of 09:44:45 IST, marking a decline of 1.79% from the previous close of ₹31.88. This price action reflects a persistent bearish sentiment, with the stock now just 0.86% above its 52-week low of ₹31.27.

The stock’s performance on the day lagged behind the Power sector, which declined by a modest 0.10%, and the Sensex, which fell 0.52%. Over the past three consecutive sessions, Reliance Power has lost 5.74% in value, signalling sustained selling pressure.

Volume Surge and Investor Participation

Reliance Power’s total traded volume of 84.57 lakh shares represents a significant spike compared to its recent averages. Notably, the delivery volume on 16 Jan 2026 surged to 2.27 crore shares, a remarkable 97.09% increase over the five-day average delivery volume. This heightened investor participation indicates increased interest, possibly from both institutional and retail investors, although the direction appears skewed towards distribution rather than accumulation.

The stock’s liquidity remains adequate for sizeable trades, with a trade size capacity of approximately ₹2.45 crores based on 2% of the five-day average traded value. This liquidity facilitates active trading but also exposes the stock to sharper price movements amid volatile market conditions.

Technical Indicators and Moving Averages

Technically, Reliance Power is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — underscoring a bearish trend across multiple timeframes. This persistent weakness in price relative to moving averages often signals a lack of buying interest and potential continuation of the downtrend unless a significant catalyst emerges.

Such technical positioning, combined with the stock’s proximity to its 52-week low, suggests that investors remain cautious. The absence of any meaningful bounce-back despite high volume trading points towards distribution, where sellers are offloading shares to buyers who may be speculative or short-term in nature.

Fundamental and Market Context

Reliance Power operates within the Power industry and is classified as a Small Cap with a market capitalisation of approximately ₹13,011.14 crores. Despite its sizeable market cap, the company’s Mojo Score stands at a low 34.0, reflecting weak fundamentals and market sentiment. The Mojo Grade was recently downgraded from Strong Sell to Sell on 03 Nov 2025, indicating a slight improvement but still signalling caution for investors.

The company’s Market Cap Grade is rated 3, which is relatively low, suggesting limited institutional interest and potential challenges in scaling up market valuation. This rating aligns with the stock’s current underperformance and technical weakness.

Accumulation vs Distribution Signals

The surge in volume accompanied by a falling price typically points to distribution, where sellers dominate the market. The nearly doubling of delivery volume on 16 Jan 2026 compared to the recent average further supports this view, as investors appear to be offloading shares rather than accumulating them for long-term gains.

Moreover, the stock’s inability to sustain levels above key moving averages and its proximity to the 52-week low reinforce the bearish narrative. While rising volume can sometimes indicate accumulation ahead of a rally, in this case, the price action suggests that the increased activity is driven by selling pressure.

Sector and Broader Market Comparison

When compared to the Power sector and the broader Sensex index, Reliance Power’s underperformance is notable. The sector’s marginal decline of 0.10% contrasts with the stock’s sharper fall of 1.32% on the day, while the Sensex’s 0.52% drop also outpaces the sector but remains less severe than Reliance Power’s losses.

This relative weakness highlights company-specific challenges or negative sentiment that is not fully reflected in the sector or market indices. Investors should be mindful of these divergences when considering exposure to Reliance Power.

Investor Takeaway and Outlook

Reliance Power’s current trading profile characterised by high volume but declining prices suggests a cautious stance for investors. The stock’s technical weakness, combined with a low Mojo Score and Sell rating, indicates limited near-term upside and potential for further downside risk.

Investors should closely monitor volume trends and price action for any signs of accumulation or reversal. Until the stock can break above key moving averages and demonstrate sustained buying interest, it remains vulnerable to continued selling pressure.

Given the stock’s liquidity and active trading, short-term traders may find opportunities in volatility, but long-term investors should consider the fundamental challenges and sector dynamics before committing capital.

Summary of Key Metrics:

• Total traded volume: 84.57 lakh shares


• Total traded value: ₹26.82 crores


• Last traded price: ₹31.40 (down 1.79%)


• 52-week low proximity: 0.86%


• Mojo Score: 34.0 (Sell, downgraded from Strong Sell on 03 Nov 2025)


• Market cap: ₹13,011.14 crores (Small Cap)


• Delivery volume spike: 2.27 crore shares on 16 Jan 2026 (+97.09% vs 5-day average)


• Trading below all major moving averages

In conclusion, Reliance Power Ltd’s high volume trading activity amid a persistent downtrend and weak technical indicators signals a market environment dominated by distribution. Investors should exercise caution and consider alternative opportunities within the Power sector or broader market until a clear turnaround emerges.

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