Reliance Power shares soar 5% to upper circuit for fourth straight day. Here's why
The rally in the company's shares follows the announcement of a board meeting scheduled for September 23, 2024, to discuss a significant fundraising proposal.
by Koustav Das · India TodayIn Short
- Reliance Power shares rise 5%, hitting upper circuit limit
- Stock surges ahead of board meeting for fundraising proposal
- Analysts foresee bullish potential if shares breach Rs 40 decisively
Shares of Reliance Power, owned by Anil Ambani, surged 5% on Monday, hitting the upper circuit limit for the fourth consecutive day.
The rally in the company's shares follows the announcement of a board meeting scheduled for September 23, 2024, to discuss a significant fundraising proposal.
The stock opened strong, peaking at Rs 38.15 on the National Stock Exchange as investors expressed optimism ahead of the meeting.
Reliance Power's consistent performance this week, including upper circuit hits on Wednesday, Thursday, and Friday, reflects heightened market interest.
Sumeet Bagadia, Executive Director at Choice Broking, indicated a bullish outlook for the stock. He said Reliance Power shares could become "highly bullish" if they breach Rs 40 levels decisively.
"Current shareholders are advised to hold, setting a stop loss at â¹35, with short-term targets of â¹45 and â¹50.” He also encouraged new investors to consider purchasing the stock under similar conditions," he added.
The company has announced its intention to explore various avenues for raising long-term capital, including equity shares, equity-linked securities, and foreign currency convertible bonds.