Reliance Power of Anil Ambani witnesses 5% plunge in share price; market cap reaches to Rs…

The reasons behind the rally in the stock include its classification as being in the overbought zone. An overbought stock zone refers to a situation where a security trades at the upper end of its recent price range.

Anil Ambani-led Reliance Power’s shares hit the lower circuit on Tuesday, closing in the red on Monday and also last Friday. The company witnessed a plunge of 5%.

After a dip in stock, the company’s market cap has reached Rs 180,000,000,000. Earlier, the shares of Reliance Power hit the upper circuit, raising investor confidence. The surge in stock had solidified the company’s position.

The reasons behind the rally in the stock include its classification as being in the overbought zone. An overbought stock zone refers to a situation where a security trades at the upper end of its recent price range. The company’s Relative Strength Index (RSI) indicates a value of 79, suggesting that the stock is overbought.

Market experts are of the view that investors are doing profit booking from the stocks of Reliance Power and it is the main reason for drop in stocks.