Reliance Power Ltd’s Volatile Week: -0.21% Price Change Amid Heavy Volume and Mixed Signals

27 January 2026: Fresh 52-Week Low Amid Heavy Selling

Reliance Power’s stock opened the week on a weak note, falling to a 52-week low of Rs.26.83 on 27 January 2026. The stock closed at Rs.27.46, down 3.04% on the day, sharply underperforming the Sensex which rose 0.50%. This decline was accompanied by exceptional trading volume of nearly 1.85 crore shares, indicating intense selling pressure despite increased investor participation.

Technically, the stock remained below all key moving averages, signalling sustained bearish momentum. Institutional investors reduced their holdings by 0.52% in the previous quarter, reflecting waning confidence. The company’s Mojo Score stood at 34.0 with a ‘Sell’ grade, an upgrade from ‘Strong Sell’ but still cautionary. The market capitalisation was approximately ₹11,381.64 crores, categorising it as a small-cap stock within the power sector.

28 January 2026: Sharp Intraday Rebound with Volume Surge

On 28 January, Reliance Power staged a notable recovery, surging 7.61% intraday to a high of Rs.29.55 and closing at Rs.29.41. This rally outpaced the power sector’s 2.81% gain and the Sensex’s 0.59% rise, highlighting a brief shift in market sentiment. The stock’s volume surged further to over 2.05 crore shares, with delivery volumes rising 5.18% compared to the previous day, suggesting genuine investor interest.

Despite this rebound, the stock remained below all major moving averages, indicating the rally was likely corrective rather than a sustained uptrend. The Mojo Grade remained ‘Sell’, reflecting ongoing caution. The power sector’s mixed technical signals and regulatory challenges continued to weigh on the stock’s outlook.

29 January 2026: Renewed Selling Pressure Despite Heavy Volume

The following day, Reliance Power faced renewed selling pressure, closing at Rs.27.80, down 5.47% intraday and 2.89% from the previous close. The stock underperformed both the power sector, which gained 0.40%, and the Sensex, which declined 0.48%. Trading volume remained elevated at over 1.06 crore shares, with delivery volumes increasing 2.82%, indicating active participation but predominantly distribution rather than accumulation.

Price action showed the weighted average closer to the day’s low, a classic sign of selling dominance. The stock continued to trade below all key moving averages, reinforcing the bearish technical outlook. The Mojo Score and ‘Sell’ grade remained unchanged, reflecting persistent fundamental and technical challenges.

30 January 2026: Volume Surge and Modest Price Gain Amid Mixed Signals

On the final trading day of the week, Reliance Power recorded a modest gain of 1.65%, closing at Rs.28.26, outperforming the power sector’s 0.41% decline and the Sensex’s 0.48% drop. The stock’s volume surged again to 2.20 crore shares, with delivery volume rising 3.24%, signalling increased accumulation interest. However, the stock remained below all major moving averages, indicating the longer-term downtrend persists.

The company’s Mojo Grade stayed at ‘Sell’, reflecting cautious sentiment despite the volume-driven price strength. Market capitalisation was approximately ₹11,473 crores, with liquidity sufficient to support sizeable trades without significant market impact. Investors should note the mixed technical signals and weigh them against the company’s fundamental challenges.

Quarterly Earnings Impact: Profit Plunges 71% on High Tax Rate

Adding to the week’s mixed signals, Reliance Power reported a sharp 71% decline in Q3 FY26 profit, primarily due to a high tax rate that eroded recent gains. This earnings disappointment likely contributed to the stock’s subdued price performance and cautious investor sentiment despite the volume surges and short-term rebounds.

The earnings report underscores ongoing challenges in profitability and cash flow, which remain key concerns for investors assessing the stock’s medium-term outlook. The combination of weak fundamentals and volatile price action suggests that Reliance Power’s recovery, if any, may be gradual and contingent on improved financial results and sector conditions.

Daily Price Performance: Reliance Power vs Sensex

Key Takeaways

Positive Signals: The stock’s volume surged consistently throughout the week, with rising delivery volumes indicating genuine investor interest and some accumulation. The intraday rebound on 28 January demonstrated the stock’s capacity for sharp rallies despite technical headwinds. The upgrade from ‘Strong Sell’ to ‘Sell’ Mojo Grade reflects a slight improvement in market sentiment.

Cautionary Signals: Reliance Power’s stock remains below all major moving averages, signalling a persistent downtrend. The fresh 52-week low and repeated underperformance relative to the Sensex and power sector highlight ongoing vulnerabilities. The sharp 71% plunge in quarterly profit due to a high tax rate adds to fundamental concerns. Heavy volume on down days suggests distribution rather than sustained buying.

Overall, the stock’s technical and fundamental profile remains mixed, with short-term rallies tempered by structural challenges and earnings pressure. Investors should monitor volume trends, price action relative to moving averages, and upcoming financial results to gauge potential shifts in momentum.

Conclusion

Reliance Power Ltd’s week ending 30 January 2026 was characterised by volatility, heavy trading volumes, and mixed price action. While the stock showed resilience with a strong intraday rally and volume-driven gains, it ultimately closed the week slightly lower, underperforming the broader market. The company’s disappointing quarterly earnings and persistent technical weakness underscore the challenges ahead.

Investors should approach Reliance Power with caution, balancing the signs of accumulation against the prevailing downtrend and fundamental headwinds. Continued monitoring of volume patterns, price movements relative to key averages, and sector developments will be essential to assess the stock’s trajectory in the coming weeks.

Unlock special upgrade rates for a limited period. Start Saving Now →