Reliance Power Share Price can cross the previous high of 65 in the next 5 days, know what is the confirmation
the share price of Reliance Power is in focus as investors analyze its performance and important market levels. The current trading price is around ₹36.34, reflecting a significant change from previous sessions. This article explores the expected performance of Reliance Power shares today, key support and resistance levels, and the latest news affecting the stock.
Main Points
As of the last trading session on September 20, 2024, Reliance Power shares closed at ₹36.34. This represents a notable increase of approximately 4.98% from the previous close of ₹34.61. Over the past week, the stock has shown a robust upward trend, gaining around 16.65%. This performance is particularly impressive when compared to its three-month growth of 12.26% and six-month growth of 51.80%.
For today’s trading session, investors should keep an eye on critical price levels:
- Resistance Levels:
- R1: ₹36.34
- R2: ₹38.11
- R3: ₹40.00 (projected)
- Support Levels:
- S1: ₹34.00
- S2: ₹32.87
- S3: ₹30.00 (projected)
These levels are essential for traders looking to make informed decisions based on market movements throughout the day.
Despite recent gains in share price, Reliance Power has faced challenges in its financial performance. The company reported a loss of ₹97.85 crore for the last quarter, marking its fourth consecutive quarter of losses. Additionally, it has recorded a negative return on equity (ROE) for three consecutive years, indicating ongoing struggles in profitability.
The company’s earnings per share (EPS) currently stands at -₹4.66, with a price-to-earnings (P/E) ratio of -7.43, suggesting that it is trading at a low valuation compared to its earnings potential. Furthermore, the company’s market capitalization is approximately ₹13,894 crore.
Several recent developments could influence investor sentiment regarding Reliance Power:
- Debt Management Concerns:
The company has spent a significant portion of its operating revenues—31.06%—on interest expenses. This raises concerns about financial sustainability and may affect future profitability. - Investor Sentiment:
Despite financial setbacks, foreign institutional investors have shown interest in increasing their stakes in Reliance Power. This could indicate confidence in potential recovery strategies or upcoming projects. - Market Competition:
Reliance Power operates in a competitive environment with key players like NTPC and Adani Power also vying for market share in power generation. The company’s ability to innovate and reduce costs will be crucial for maintaining its position. - Future Projects:
The company has plans to expand its renewable energy portfolio, which could enhance its long-term growth prospects. Investors are keen to see how these initiatives unfold.
Disclaimer: The information given in this article is from investment experts and brokerage companies, they do not represent Local Haryana. Before taking any investment related decision, you must consult a certified expert.
