Tue Oct 08 12:52:12 UTC 2024: ## Reliance Power Shares Plunge After Debt-Free Rally

Reliance Power shares have been on a downward trajectory for the past three trading sessions, hitting the 5% lower circuit for the third consecutive day. The stock currently trades at Rs 48.40, a decline of 11% from its recent 52-week high of Rs 53.64 reached just last week.

The recent slump comes after a month of remarkable gains, where the shares skyrocketed over 60%, fueled by the company’s announcement of becoming debt-free. However, as is typical in the market, profit-booking has followed the rally, coinciding with a broader market sell-off.

Despite the current downturn, Reliance Power’s stock has experienced a significant year-to-date surge of approximately 102%. The company’s recent successes, including securing a contract for a 500 MW/1000 MWh battery storage project from SECI and being released from all obligations related to its subsidiary VIPL’s debt, have contributed to its positive performance in the past year.

From a technical perspective, while Reliance Power shares trade above their key moving averages, a relative strength index (RSI) of 79 suggests overbought conditions.

Despite the recent dip, Reliance Power’s stock has significantly outperformed the Nifty index over the past year, with a 172% gain compared to the index’s 28% increase.

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