The stock of Reliance Power, the company of Anil Ambani, the younger brother of Asia’s richest man Mukesh Ambani, is rising at a rocket speed. It has jumped by about 16 percent in the last 3 days. On Tuesday, the second trading day of the week, Reliance Power Share hit an upper circuit and reached very close to its 52-week high level. A deal is being said to be the reason behind this rise in the stock.
The stock created a stir amid the boom in the market
On Tuesday, the stock market witnessed a strong rally and after trading in the green for the whole day, the 30-share Sensex of the Bombay Stock Exchange closed at 80,802.86 with a gain of 378.18 points, while the Nifty-50 of the National Stock Exchange also closed at 24,698.85 with a gain of 126.20 points. Amidst this boom in the market, the stock of Anil Ambani’s company Reliance Power also rose at a stormy pace and closed at Rs 34.42 with an upper circuit.
Upper circuit is being felt for 3 consecutive days
Anil Ambani’s Reliance Power’s stock has been in a continuous upper circuit in the last three trading days and during this period it has jumped by a total of 15.72 percent. The effect of the rise in the stock has also been seen on the market cap of the company and it has increased to Rs 13830 crore. It is worth noting that the 52-week high level of Reliance Power share is Rs 34.54, while its 52-week low level is Rs 15.55.
Is this the reason for the surge in the stock?
This was about the performance of Anil Ambani’s stock in the last three days, now let’s know why this stock is suddenly running like a rocket. According to a report published on Business Today, this sharp jump in the share price of Reliance Power has come after a report came that billionaire Gautam Adani’s company Adani Power has started talks to buy a thermal power project in Nagpur, which was owned by Anil Ambani’s Reliance Power.
This is what the experts say
Kranti Bathini, Director, Equity Strategy at WealthMills Securities, said the stock has seen movement after a recent report claimed that Adani Power is in talks to buy Reliance Power’s 600 MW thermal plant in Nagpur.
Osho Krishna, Senior Research Analyst (Technical and Derivatives) at Angel One, says that Reliance Power’s stock has seen a strong rally in the last few trading days, currently, this stock is at a crucial juncture of a several-week breakout and can further reach the range of Rs 42-45. At the lower level, it can go up to Rs 32-30. On the other hand, Ravi Singh, Vice President of Religare Broking has advised that this stock of Anil Ambani has the potential to touch a target of above Rs 38.
(Note- Before making any kind of investment in the stock market, please take advice from your market experts.)
Source (PTI) (NDTV) (HINDUSTANTIMES)