Trading Activity and Price Movement
On 29 Jan 2026, Reliance Power witnessed a total traded volume of 1,06,27,376 shares, translating to a traded value of approximately ₹30.94 crores. The stock opened at ₹29.70, reaching an intraday high of ₹29.96 before sliding to a low of ₹28.52. The last traded price (LTP) stood at ₹28.52 as of 09:43:43 IST, marking a decline of 3.43% from the previous close of ₹29.40. This price movement reflects a bearish bias, with the stock underperforming the power sector by 2.55% and the Sensex by 2.95% on the day.
The weighted average price indicates that a significant portion of the volume was traded closer to the day’s low, suggesting selling pressure dominated the session. This is further corroborated by the stock trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a sustained downtrend and weak technical momentum.
Volume Surge and Investor Participation
The surge in volume is notable against the backdrop of rising investor participation. Delivery volume on 28 Jan 2026 was recorded at 2 crore shares, representing a 2.82% increase over the five-day average delivery volume. This uptick in delivery volume indicates genuine accumulation or distribution rather than mere speculative intraday trading.
However, the directional bias appears negative given the price decline and volume concentration near the lows. The stock’s liquidity remains adequate, with the average traded value supporting trade sizes up to ₹3.46 crores, making it accessible for institutional and retail investors alike.
Fundamental and Market Context
Reliance Power operates within the power industry, classified under the power sector, and is currently a small-cap stock with a market capitalisation of ₹11,807.63 crores. The company’s Mojo Score stands at 34.0, reflecting a Sell rating, an improvement from a previous Strong Sell grade assigned on 03 Nov 2025. Despite this upgrade, the score remains low, indicating persistent fundamental or technical challenges.
The market cap grade of 3 further underscores the company’s modest size relative to larger peers, which may contribute to higher volatility and sensitivity to sectoral and macroeconomic developments.
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Technical Analysis and Distribution Signals
The technical picture for Reliance Power remains challenging. The stock’s consistent trading below all major moving averages suggests entrenched bearish momentum. The 5-day moving average, often a short-term trend indicator, is also above the current price, reinforcing the negative near-term outlook.
Volume analysis reveals that the bulk of trading occurred near the day’s low, a classic sign of distribution where sellers dominate. This pattern often precedes further downside unless offset by strong fundamental news or sectoral tailwinds.
Moreover, the increase in delivery volume, while indicating higher investor participation, does not necessarily imply accumulation. Given the price decline, it is plausible that long-term holders are offloading positions, or new sellers are entering the market, contributing to the volume spike.
Sector and Market Comparison
On the same day, the power sector recorded a modest gain of 0.40%, contrasting with Reliance Power’s 2.89% loss. The Sensex also declined by 0.48%, indicating a broadly negative market environment. Reliance Power’s underperformance relative to both its sector and the benchmark index highlights company-specific pressures or investor concerns.
Such divergence often attracts the attention of traders and analysts seeking to identify stocks with potential turnaround or further downside risk. In this case, the technical and volume data suggest caution.
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Implications for Investors
For investors, the current trading activity in Reliance Power signals heightened volatility and a cautious outlook. The combination of heavy volume, price weakness, and technical underperformance suggests that the stock is undergoing distribution rather than accumulation.
Investors should closely monitor upcoming quarterly results, sectoral developments such as regulatory changes or power demand trends, and any corporate announcements that could alter the stock’s trajectory. Until then, the Sell rating and low Mojo Score advise prudence.
Conclusion
Reliance Power Ltd’s exceptional volume on 29 Jan 2026 reflects significant investor interest but is accompanied by bearish price action and technical weakness. The stock’s underperformance relative to its sector and the broader market, combined with distribution signals, suggests that downside risks remain elevated. While the recent upgrade from Strong Sell to Sell indicates some improvement, the overall outlook remains cautious for this small-cap power company.
Market participants should weigh these factors carefully and consider alternative opportunities within the power sector or broader market that demonstrate stronger fundamentals and momentum.
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