Stock market today: Anil Ambani-backed Reliance Power shares have been in uptrend after ushering in current financial year 2023-24. Reliance Power shares bottomed out at ₹9.15 apiece levels at the end of March 2023. Since then it has been moving upside continuously.
Reliance Power share price today opened upside and went on to touch intraday high of ₹24.25 per share levels, logging intraday rise of around 4 per cent during morning deals on first trade session of New Year 2024.
According to stock market experts, market is bullishn on power stocks on tarrif hike. It is not just Reliance Power shares, in fact most of the power stocks backed by strong brand like Tata or Adani, they have witnessed strong buying interest in recent months.
Also Read: Yes Bank shares cheer New Year after receipt of ₹150 crore from NPA portfolio sale. Experts see more upside
Reliance Power being backed by Anil Ambani and available at such a lower price are some of the major reasons for value buying in the scrip. However, they warned investors to maintain strict stop loss while keeping position in Reliance Power shraes as it may move either ways on single trigger.
Tarrif hike in focus
Speaking on the reasons that are fueling Reliance Power shares, Avinash Gorakshkar, Head of Research at Profitmart Securities said, “Its 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 are tarrif 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.”
Also Read: RailTel Corporation shares extend gains for second day, hit new all-time high
Gorakshkar said that Reliance Power has tranfered the development rights of its proposed 1,200 MW KalaiII hydro-electric project in Arunachal Prades to THDC for ₹128.39 crore. This is also a short term trigger, which has attracted attention of Dalal Street bulls towards Reliance Power shraes.
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.”
Also Read: LIC-backed penny stock sets record date for issuance of 1:1 bonus shares
“Fresh investors can maintain buy on dips strategy for above mentioned short term targets. But, they also need to maintain strcit stop loss at ₹21 while taking fresh position in Reliance Power shares.”
Reliance Power news
This Anil Ambani-backed power company has transferred the development rights and associated physical assets of the proposed 1,200 MW KalaiII hydro-electric project at Lohit River Basin of Arunachal Pradesh to THDC for ₹128.39 crore.
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.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it’s all here, just a click away! Login Now!
Download The Mint News App to get Daily Market Updates.
More
Less
Published: 01 Jan 2024, 11:47 AM IST
