Reliance Power Ltd Sees Heavy Volume Amid Continued Downtrend and Weak Investor Sentiment

Trading Activity and Price Movement

On the trading session of 2 Feb 2026, Reliance Power opened at ₹27.20 and witnessed a high of ₹27.29 before sliding to a low of ₹26.45, where it established a new 52-week low. The last traded price (LTP) stood at ₹26.95 as of 09:44:41 IST, reflecting a decline of 0.95% on the day. This price movement contrasts with the Power sector’s gain of 0.74% and the Sensex’s modest rise of 0.22%, underscoring the stock’s relative weakness.

The stock has now recorded losses for two consecutive sessions, cumulatively falling by 4.5% over this period. This sustained decline is accompanied by the stock trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a bearish technical setup and a lack of short- to long-term buying interest.

Volume Surge and Liquidity Analysis

Reliance Power’s total traded volume of 83,19,675 shares on 2 Feb 2026 represents a significant spike compared to its recent averages. However, delivery volumes tell a more nuanced story. On 30 Jan 2026, the delivery volume was 1.58 crore shares, but this figure has declined by 15.81% relative to the five-day average delivery volume, indicating a reduction in investor participation in terms of actual shareholding transfer.

Despite the drop in delivery volume, the stock remains sufficiently liquid for sizeable trades, with a trade size capacity of approximately ₹3.11 crores based on 2% of the five-day average traded value. This liquidity level supports active trading but also suggests that the volume surge may be driven more by intraday or speculative activity rather than sustained accumulation by long-term investors.

Fundamental and Market Positioning

Reliance Power operates within the Power industry and sector, classified as a small-cap company with a market capitalisation of approximately ₹11,287 crores. The company’s Mojo Score currently stands at 29.0, reflecting a Strong Sell rating, which is a downgrade from its previous Sell grade as of 3 Nov 2025. This downgrade signals deteriorating fundamentals or market sentiment, which investors should weigh carefully.

The company’s Market Cap Grade is rated 3, indicating a relatively modest size within its peer group. The combination of a low Mojo Score and a Strong Sell grade suggests that the stock faces significant headwinds, both from a fundamental and technical perspective.

Accumulation and Distribution Signals

Technical indicators point towards a distribution phase rather than accumulation. The consistent trading below all major moving averages, coupled with the recent price lows, suggests that sellers are dominating the market. The decline in delivery volume further supports the view that long-term investors are reducing their holdings rather than accumulating shares.

Moreover, the underperformance relative to the sector and benchmark indices highlights the stock’s vulnerability amid broader market strength. This divergence often signals a lack of confidence among investors and may precede further downside unless there is a fundamental catalyst to reverse the trend.

Outlook and Investor Considerations

Given the current technical and fundamental landscape, Reliance Power appears to be under significant selling pressure. The strong volume activity, while notable, seems to be driven by short-term trading rather than sustained buying interest. Investors should exercise caution and consider the stock’s deteriorating Mojo Score and Strong Sell rating before initiating new positions.

For those already holding the stock, monitoring key support levels around the recent low of ₹26.45 is critical. A breach below this level on strong volume could trigger further declines. Conversely, a recovery above the short-term moving averages might indicate a potential technical rebound, though this would require confirmation through sustained volume and positive fundamental developments.

Comparative Sector Performance

While Reliance Power struggles, the broader Power sector has shown resilience, gaining 0.74% on the same day. This divergence suggests that investors are favouring other companies within the sector, possibly those with stronger fundamentals or better growth prospects. The Sensex’s modest gain of 0.22% further emphasises that Reliance Power’s weakness is stock-specific rather than market-wide.

Investors analysing the Power sector should consider the relative strength of peers and assess whether Reliance Power’s valuation and risk profile justify continued exposure. The current Mojo Grade downgrade and low score reinforce the need for a cautious approach.

Summary

Reliance Power Ltd’s exceptional trading volume on 2 Feb 2026 highlights heightened market interest, but the accompanying price weakness and technical signals point to a predominantly bearish outlook. The stock’s new 52-week low, declining delivery volumes, and downgrade to a Strong Sell rating underscore the challenges ahead. While liquidity remains adequate for active trading, the lack of accumulation suggests that the volume surge is driven by short-term traders rather than long-term investors.

Investors should carefully monitor price action around key support levels and consider alternative opportunities within the Power sector or broader market that demonstrate stronger fundamentals and technical setups.

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