Reliance Power Ltd Sees Heavy Volume Amid Continued Downtrend and Market Underperformance

Exceptional Trading Volumes Highlight Investor Focus

Reliance Power Ltd recorded a total traded volume of 3,06,08,142 shares on 20 Jan 2026, translating to a traded value of approximately ₹9433.43 lakhs. This volume figure is significantly above the stock’s five-day average delivery volume, which stood at around 1.46 crore shares prior to this session. The delivery volume on 19 Jan was 1.71 crore shares, marking a 17.44% increase over the recent average, signalling rising investor participation and heightened liquidity in the stock.

The stock’s liquidity profile supports sizeable trade sizes, with a 2% threshold of the five-day average traded value allowing for transactions up to ₹2.57 crore without materially impacting the price. This level of liquidity is notable for a small-cap company with a market capitalisation of ₹12,813 crore, indicating robust market interest despite recent price weakness.

Price Performance and Technical Indicators Paint a Bearish Picture

On the price front, Reliance Power’s last traded price (LTP) stood at ₹30.14 as of 13:24 IST on 20 Jan 2026, down 3.41% from the previous close of ₹31.11. The stock opened marginally higher at ₹31.25 but failed to sustain gains, touching an intraday low of ₹30.09, which also represents a new 52-week low. This decline extends a losing streak spanning four consecutive sessions, cumulatively eroding nearly 9.9% of the stock’s value.

Comparatively, the power sector index declined by 1.17% and the Sensex by 0.84% on the same day, underscoring Reliance Power’s relative underperformance by approximately 2.24 percentage points. The stock’s price is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — reinforcing the prevailing bearish momentum and suggesting limited near-term support from technical levels.

Mojo Score and Ratings Reflect Negative Outlook

Reliance Power’s current Mojo Score stands at 34.0, categorised under a ‘Sell’ grade as of 3 Nov 2025, an upgrade from a prior ‘Strong Sell’ rating. This slight improvement in grade does not yet translate into a positive outlook, as the score remains well below the threshold for neutral or buy recommendations. The company’s market cap grade is 3, indicating a small-cap status with associated volatility and risk factors.

The downgrade in sentiment is consistent with the stock’s recent price action and volume surge, which may be driven by increased selling pressure or distribution by institutional investors. The persistent decline in price alongside rising volumes often signals accumulation or distribution phases; in this case, the data suggests distribution, as the stock fails to hold support levels and continues to underperform sector peers.

Sector Context and Broader Market Implications

The power sector, while generally defensive, has faced headwinds from regulatory challenges and fluctuating fuel costs. Reliance Power’s underperformance relative to the sector index highlights company-specific concerns, possibly linked to operational issues or investor apprehension about future earnings growth. The broader market’s modest decline on the day contrasts with the sharper fall in Reliance Power, emphasising the stock’s vulnerability amid current market conditions.

Investors should note that the stock’s failure to sustain above key moving averages and the breach of a 52-week low are technical red flags. These factors, combined with the Mojo Grade of Sell, suggest caution for those considering fresh exposure. However, the elevated volumes also indicate that the stock remains in focus, potentially setting the stage for a reversal if positive catalysts emerge.

Investor Takeaway: Volume Surge Amid Distribution Signals

The surge in trading volume for Reliance Power Ltd amid a sustained price decline and underperformance relative to sector and market benchmarks suggests a distribution phase rather than accumulation. The stock’s breach of a 52-week low and trading below all major moving averages reinforce a bearish technical outlook. While increased liquidity and delivery volumes indicate active investor interest, the prevailing sentiment remains cautious.

For investors, this environment calls for careful monitoring of any fundamental developments or sectoral shifts that could alter the stock’s trajectory. Given the current Mojo Grade of Sell and the stock’s small-cap status, risk-averse investors may prefer to explore alternative opportunities with stronger momentum and more favourable technical setups.

In summary, Reliance Power’s high volume trading activity on 20 Jan 2026 reflects significant market attention but is accompanied by negative price action and technical signals. This combination warrants prudence and a thorough analysis of peer comparisons and sector trends before committing capital.

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