Why Anil Ambani-backed Reliance Power’s share price is skyrocketing — explained

Stock market today: Anil Ambani-backed Reliance Power's shares have been in the uptrend since the beginning of the current financial year 2023-24. Reliance Power shares bottomed out at ₹9.15 apiece levels at the end of March 2023. Since then, the stock has been moving up continuously.

Reliance Power share price today opened higher and went on to touch an intraday high of ₹24.25 per share, logging an intraday rise of around 4 percent in the first trade session of New Year 2024.

According to stock market experts, market is bullish on power stocks on tariff hike. Most power stocks have witnessed strong buying interest in recent months.

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Reliance Power stock may go up to ₹30 apiece but one must maintain strict stop loss at ₹21 while keeping any position in this Anil Ambani-backed company's stock, say market experts.

Tariff hike in focus

“It's not just Reliance Power shares, most of the power stocks backed by big names like Tata and Adani have also ascended in recent months. Major reason for upside in these power shares is tariff hike in power sector. This is expected to improve margins of the power companies and Dalal Street bulls are betting high on power stocks these days. Reliance Power shares are getting benefit of this positive sentiment on the power stocks,” said Avinash Gorakshkar, Head of Research at Profitmart Securities.

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Gorakshkar said that Reliance Power has transferred the development rights of its proposed 1,200 MW KalaiII hydro-electric project in Arunachal Pradesh to THDC for ₹128.39 crore. This is also a short-term trigger, which has attracted attention of Dalal Street bulls towards Reliance Power.

Reliance Power share price target

Expecting further upside in Reliance Power shares, Sumeet Bagadia, Executive Director at Choice Broking, said, "Reliance Power shares are looking positive and high-risk investors can hold the stock for short-term target of ₹28 and ₹30, respectively. However, one must maintain strict stop loss at ₹21 while keeping one's position in this Anil Ambani-backed company's stock."

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decision.

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