Tue Oct 08 12:11:46 UTC 2024: ## Reliance Power Shares Plunge 5% as Investors Book Profits After Recent Surge
**Mumbai, October 7:** Shares of Reliance Power continued their downward trend today, hitting the lower circuit for the third consecutive session, as investors engaged in profit-booking following the stock’s recent surge.
The stock, which reached a 52-week high of Rs 53.64 last week, is now trading 11% below that level. This decline comes after a remarkable 60% increase over the past month, fueled by strong investor sentiment following the Anil Ambani-led company’s announcement of becoming debt-free.
Reliance Power’s recent positive developments, including the release from corporate guarantees and securing a major battery storage contract, had driven investor optimism. However, the broader market sell-off appears to have prompted profit-taking in the stock.
Technical analysts, like Abhijeet Ramachandran, a SEBI registered independent research analyst, are advising investors to book profits at current levels, citing overbought conditions and bearish signals on the daily charts. Ramachandran predicts that a daily close below the support level of Rs 48 could potentially lead to a drop to Rs 35 in the near term.
Despite today’s decline, Reliance Power shares have still registered a substantial 102% gain this year, significantly outperforming the benchmark Nifty’s returns of 15%. Over the past 12 months, the stock has rallied an impressive 172%, more than doubling investors’ money.
While the current decline might be a temporary setback, the long-term outlook for Reliance Power remains positive, driven by its recent strategic moves and the growing demand for clean energy solutions.
First Piper 