The recent surge in the share price of Reliance Power, a company backed by Anil Ambani, has caught the attention of investors and market analysts alike.

The stock has witnessed an impressive rise of over 30 per cent over seven consecutive trading sessions.

This upward trajectory marks a significant turnaround from its recent lows of around ₹20 per share, recorded on March 13, 2024, to a closing price of ₹26.30 per share as of the previous Friday.

During the past week, Reliance Power shares have consistently displayed an upward trend, with four out of five trading sessions witnessing the stock hitting the upper circuit.

The only exception to this pattern was observed on Tuesday when the stock failed to lock in the upper circuit. Market experts attribute this remarkable performance to several key factors.

One primary catalyst driving the surge in Reliance Power shares is the recent buzz surrounding the company's successful resolution of dues with prominent financial institutions such as ICICI Bank, Axis Bank, and DBS Bank.

Reports indicate that the company has settled most of its outstanding liabilities, with only a working capital loan remaining on its books, notably from IDBI Bank.

Additionally, investors have welcomed the news of a capital infusion by Reliance Commercial Finance, which has injected optimism regarding the company's prospects for financial recovery and operational revitalization.

This strategic move has instilled confidence among shareholders, signalling a potential turnaround in the fortunes of Reliance Power.

Commenting on the factors fueling the upward momentum of Reliance Power shares, Parth Shah, a Research Analyst at StoxBox, highlighted the company's concerted efforts to reduce debt and enhance its overall business and financial sustainability.

Shah emphasized that the positive market sentiment was largely driven by reports of debt settlement and capital infusion, which align with the company's strategic objectives.

Market analysts foresee continued bullish sentiment surrounding Reliance Power, with expectations of further price appreciation.

Sumeet Bagadia, Executive Director at Choice Broking, suggests that shareholders maintain their positions, setting a stop loss at ₹22 per share.

He identifies a resistance level at ₹30 per share, beyond which the stock could potentially rally to reach ₹34 per share in the short term.

In conclusion, the recent surge in Reliance Power shares underscores investors' growing confidence in the company's ability to navigate challenges, reduce debt burdens, and capitalize on emerging opportunities within the power sector.

With strategic initiatives underway and positive market dynamics at play, Reliance Power appears poised for sustained growth and value creation in the foreseeable future.