Reliance Power has retraced nearly 13.5% from its recent high, and the analyst said holding the structural support level could spark gains.
Reliance Power has retraced nearly 13.5% from its recent high of ₹69.24, finding support at a structural trendline near ₹60, according to SEBI-registered analyst Rajneesh Sharma.
At the time of writing, shares of Reliance Power were trading at ₹64.1, up 0.9% on the day.
Sharma noted that the lower black trendline, which was previously a resistance, is now acting as support.
The weekly relative strength index (RSI) has eased from above 75 to around 69.8, signaling a cooling off in momentum without any immediate signs of bearish divergence.
He added that strong volume during the pullback suggested profit booking rather than a reversal in trend.
He pegged ₹60 as a key support level. If the zone holds, Sharma sees potential for consolidation, allowing RSI to reset before another leg higher.
A decisive move above ₹66–₹68 could trigger a fresh impulse wave. But, he warned that if ₹60 breaks, the next key support would be around ₹51.16.
Traders should focus on whether the levels of ₹60 can hold strong, said Sharma, and noted that a close below this level would likely result in a deeper correction.
The stock has risen 43.3% so far in 2025.
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