Since 2019, Anil Ambani group stocks have experienced significant volatility, often disconnected from broader market trends. Instead they have been influenced by specific issues within the group. Popular stocks like Reliance Infrastructure and Reliance Power faced sharp corrections, eroding significant investor wealth. However, since 2023, both stocks have shown notable price recovery from panic-induced lows, indicating a potential shift in sentiment.
The current bullish chart patterns for Reliance Infra and Reliance Power suggest that they remain strong. The technical outlook remains positive, signalling the potential for further upside in the near term.
Reliance Infra: Bullish trend price trend to continue
Reliance Infra had given a breakdown by 2019 and made a low of around ₹8 during Covid. However, recent price action shows a possible turnaround as the share has risen from these lower levels. This can signal fresh buying interest and the beginning of an uptrend.
Key Signs Indicating Reliance Infra’s Potential Reversal
- Major Resistance Breakout: The stock has broken out of a “major resistance” pattern in the weekly time frame, which was previously supported before 2019. Again, a price level above that signals the price to go upward.
- 200-Day Moving Average: After May 2025, the stock price crossed over its 200DMA again, indicating a possible trend reversal.
- Increased volume: The volume of shares traded has increased as the price rises, indicating a trend change.
- Increasing RSI Momentum: The RSI has exceeded 60 in all three time frames, signalling strength and confirmation that the share may rise.
Outlook for Reliance Infra
Reliance Infra has remained an underperforming stock. It returned 90% from 2019 to 2020. It has now formed a bullish chart pattern for all time frames, such as daily, weekly, and monthly. We can see only the weekly time frame stock price sustaining above its major resistance, which was significant support in 2019. The stock price has formed an ascending triangle pattern, too. It has also moved above the 200-day moving average. Further, the 14-period RSI shows strength and is in a bullish zone, suggesting that Reliance Infra could potentially move up.
Reliance Power: Ready for a more Power complete move
Having created a panic bottom in 2020, Reliance Power has gained six times from April 2023. The stock has been consolidating in a tight range, devoid of volume. However, a bullish chart pattern and signals on the daily chart suggest that the trend can become bullish once again.
Key Technical Levels Favouring Reliance Power’s Reversal
- Rectangle Pattern Breaks Out: The stock has given a breakout from the “rectangle” pattern weekly, which suggests a probability of an increase in the price.
- 200-Day Simple Moving Average: The price is maintaining above its 200 SMA, a classic indication of positive sentiment and a trend reversal.
- Volume Surge Confirming the Breakout: The simultaneous rise in price and volume earlier indicated robust participation, and the current lower volume in consolidation and minor fall of price instil faith.
- Boosting the RSI Trend: The 14-period RSI has moved above 60, indicating bullish divergence and sustained upward momentum.
Prospects of Reliance Power
Reliance Power remained an underperformer from 2019 to 2023. Now, it has created numerous bullish charts on the daily, weekly, and monthly time frames. It has also gone above the 200-day moving average. Further, the 14-period RSI shows strength and is in a bullish zone, suggesting Reliance Power can potentially go on the upswing shortly.
Final Take
Before 2023, Anil Ambani’s stocks corrected, creating a panic bottom in single digits. However, the current chart setup and price have started moving in the higher top & higher bottom pattern from 2023. Reliance Infra and Reliance Power provide reasonable technical indications of the probability of a bullish trend in Anil Ambani group stocks. These stocks offer bullish chart signals, rising strength in the RSI level, showcasing key breakouts, all of which point to increasing strength & positive trends. The border market & sectoral recovery add strength, making the stocks even more appealing.
Disclaimer:
Note: The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
As per SEBI guidelines, the writer and his dependents may or may not hold the stocks/commodities/cryptos/any other assets discussed here. However, clients of Jainam Broking Limited may or may not own these securities.
Kiran Jani has over 15 years of experience as a trader and technical analyst in India’s financial markets. He is a well-known face on the business channels as Market Experts and has worked with Asit C Mehta, Kotak Commodities, and Axis Securities. Presently, he is Head of the Technical and Derivative Research Desk at Jainam Broking Limited.
Disclosure: The writer and his dependents do not hold the stocks discussed here. However, clients of Jainam Broking Limited may or may not own these securities.
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