RCap, RPower: Light at the end of the tunnel for ADAG stks? What charts say

Reliance Infrastructure has decisively crossed the 200-day moving average (DMA), as per the daily chart.

A number of Anil Ambani-led companies' stocks have been hitting their upper circuit limits or hovering around their upper price bands during the past few sessions. On Tuesday, too, the trend was no different. For instance, Reliance Power hit 5 per cent upper circuit limit of Rs 3.75 on the BSE, while Reliance Communications was locked at Rs 2.10 - the 10 per cent upper circuit limit.

Other group stocks such as Reliance Infrastructure was also hovering around its 10 per cent upper circuit band at Rs 27.50, whereas Reliance Capital was still at Rs 10.97, its 5 per cent upper circuit limit. In comparison, the benchmark S&P BSE Sensex was trading 0.5 per cent higher at 45,656 levels. 

According to a December 3 report by Business Standard, the sale of Reliance Capital’s (RCap’s) assets by banks has received an overwhelming response with eight companies – including Oaktree, JC Flowers, and six asset reconstruction companies (ARCs) – submitting EoIs (expressions of interest) for the entire company. 

The monetisation of RCap’s assets was initiated by the Committee of Debenture Holders and the Debenture Trustee Vistra ITCL India, which represents 93 per cent of the firm’s total outstanding debt. READ MORE

That said, what should one expect from these stocks going forward? Here's what charts indicate.

Reliance Capital Ltd (RELCAPITAL):  The recent move above the resistance of Rs 10 levels has seen strong upward momentum. Thereafter, it did receive minor correction which saw a reversal around the support of Rs 9. Now, with continuous four upper circuits, the counter is showing tremendous movement around Rs 10 levels. This move is supported by the Moving Average Convergence Divergence (MACD), which managed to sustain above the zero line, as per the daily chart. A closing basis support of Rs 9 may see an upside surge towards Rs 14 and Rs 19 levels. CLICK HERE FOR THE CHART
 
Reliance Infrastructure Ltd (RELINFRA): The counter has decisively crossed the 200-day moving average (DMA), as per the daily chart. It does have a formation of Inverse Head and Shoulder with a breakout suggesting a rally towards Rs 32 and Rs 35 levels. The MACD has crossed the zero line. This clearly indicates a positive momentum in the coming sessions. The immediate support comes in at Rs 24 and thereafter at Rs 22.95 levels, which is its 200-DMA. CLICK HERE FOR THE CHART
 
Reliance Communications Ltd (RCOM): This counter shows a reversal near 200-DMA placed at Rs 1.50 levels. Till the stock manages to stay above 200-DMA, the rebound may see a rally towards Rs 3 and Rs 3.20 levels. The continuous gap-up close in three sessions indicates a strong interest of market participants, which seems to stay strong for a few more sessions. The Relative Strength Index (RSI) has entered the overbought zone. If the price maintains the on-going strength, the stock may see strong up move. CLICK HERE FOR THE CHART
 
Reliance Power (RPOWER): The counter is in the trade-to-trade segment and attempting to cross the resistance of Rs 3.80 levels. It has reversed nearing the 200-DMA placed at Rs 2.70 levels recently. The overall trend is bullish, till the counter stays above the said moving average. The immediate support comes in at Rs 3 levels. CLICK HERE FOR THE CHART