After Sharp Rally, Reliance Power Enters Overbought Territory: SEBI RA Rajneesh Sharma

Shares of Reliance Power have rallied strongly in recent weeks, supported by rising momentum and institutional participation, according to SEBI-registered analyst Rajneesh Sharma. 

At the time of writing, Reliance Power shares were trading at ₹71.00, down 0.4% on the day.

However, Sharma flagged that the stock is now in overbought territory on the weekly chart.

He noted that the Relative Strength Index (RSI) stands at 75.54, which typically signals overbought conditions. 

The stock recently broke out above ₹51 and is currently trading near ₹69.25, approaching upper trendline resistance around ₹75–₹77, the analyst said. 

Sharma highlighted that volumes have surged alongside the price, indicating visible institutional activity. 

Despite the strong momentum, he suggested that a short-term breather or sideways consolidation is likely.

He maintained that the medium- to long-term trend remains bullish above ₹51, with the overall structure still intact. 

A controlled pullback could offer fresh entry opportunities, Sharma said.

Support levels to watch include ₹51 — the recent breakout zone — and ₹40–₹42, which aligns with intermediate trendline support.

“Momentum is strong, but no stock moves vertically forever,” Sharma said, adding that overbought conditions often lead to cooling-off periods. 

He advised traders to manage risk and avoid chasing prices near key resistance zones.

On Stocktwits, retail sentiment was ‘bullish’ amid ‘extremely high’ message volume.

The stock has risen 58.7% so far in 2025.

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