REC In Consolidation Mode: SEBI RA Eyes Breakout Above ₹410

Morgan Stanley recently rated the stock ‘Overweight’ with a target of ₹485. Q1 earnings could provide the next catalyst

REC stock is currently consolidating near the ₹400 mark with technical signals indicating a neutral trend, according to SEBI-registered analyst Vijay Kumar Gupta.

The price remains inside the Ichimoku cloud, reflecting indecision, while both Tenkan-sen and Kijun-sen are overlapping, a sign of sideways movement, Gupta added.

Key support levels to watch include ₹392.73 and ₹395.40, while resistance lies around ₹404.38 (cloud boundary) and ₹407 - ₹410 (supply zone). A clear move above this zone could open the door for momentum-led upside.

At the time of writing, REC shares were slightly lower at ₹398.6.

Despite the lack of technical indicators, REC continues to gain fundamental strength. 

Morgan Stanley recently rated the stock ‘Overweight’ with a target of ₹485. Meanwhile, unit REC Power Development and Consultancy (RECPDCL) signed agreements to deploy over 33 lakh smart meters in Gujarat.

The Q1 FY26 earnings are keenly awaited, which may act as a trigger, the analyst noted. The company enjoys a strong balance sheet with solid loan growth and low NPAs.

With its rising relevance in the smart grid and energy transition space, the stock remains on analysts' radars, with target ranges between ₹450 and ₹650, Gupta said.

Year-to-date (YTD), the stock has shed over 20%.

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