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Why is Anil Ambani’s Reliance Power up 40%? Shares of Reliance Power (NSE: RPOWER) have been volatile after the Indian electric company secured a long-term debt agreement for up to 12 billion rupees ($150.4 million) from private equity firm Varde Partners, a US based investment firm focused on distressed assets in India. RPOWER announced the deal on Sept. 5, sending its shares surging and at close of trading, the company stock price had risen 9.9% to 23.30 rupees. On Sept. 6, the company’s stocks dropped 6.0% at close of trading to 21.95 rupees. The abrupt increase in Reliance Power's stocks, albeit short lived, elicited a warrant for explanation from the National Stock Exchange of India Ltd. and BSE Ltd. In its response, the company said it couldn't comment on the price movement and assured that it will make an announcement when necessary. Perhaps more alarming is the climb in RPOWER’s share price before the announcement. In the two days before the announcement was confirmed, RPOWER’s shares climbed 37%. Reliance's Power in India Reliance Power is an electric power generation, transmission and distribution company based in Mumbai, India. It is the country's leading private sector power generation and coal resources company with one of the largest portfolio of power projects in the private sector, based on coal, gas, hydro and renewable energy. It has an operating portfolio of 5,945 megawatts. A member of the Reliance Group conglomerate, the power company has a market capitalization of $992.8 million. In the quarter ended June 30, the company recorded a loss attributable to owners of its parent at 708.4 million rupees against a profit of 122.8 million rupees in the prior-year period. To support its future plans, the company is considering raising fresh capital from both domestic and international investors. Apart from the recent agreement with Varde Partners, Reliance Power is considering an issuance of equity shares, equity-linked securities or convertible warrants to amass funds that it can utilize in the long run. The company's board will meet September 8 to consider future fund-raising plan. Operating Within the Ambani Conglomerate Reliance Power forms part of the Reliance Anil Dhirubhai Ambani Group, which is founded majority-owned by Anil Dhirubhai Ambani. Anil is also the chairman of Reliance Power. Anil is the youngest son of Indian billionaire Mukesh Ambani, the chairman and managing director of Fortune 500 company Reliance Industrial (NSE: RELIANCE), which is also the most valuable company in India. The brothers divided their father's business empire a decade ago. While Mukesh, who was Asia's richest man until fellow Indian billionaire Gautam Adani surpassed him, continued expanding his businesses, Anil is currently having troubles with companies defaulting and being put under administration. Nikkei Asia reported that Anil even declared himself to have a personal net worth of zero. Reliance Power's affiliate, Reliance Capital, is currently on the market with an investor group including the Hinduja Group and Oaktree Capital offering 45 billion rupees for the diversified financial services company, Economic Times of India reported. Also on offer are India's fifth-largest privately owned general insurance company, a stockbroker, a stake in an asset manager and Reliance Capital's 51% share in a life insurance venture with Japan's Nippon Life, among other assets. While it is yet to be seen if the current troubles of its affiliates will spill through Reliance Power, its recent loss will definitely not boost investor confidence. Furthermore, the company's fundraising initiatives are hardly proving that it is in a very secure position in terms of capital.
NSE:RPOWER
by BlackBull_Markets
2
Edelweiss Fin Services Bullish Scenario Bullish outlook on Edelweiss. This could potentially be a turning point from the weekly chart, resulting in this market shirting into a 'buy program' and seeking high prices. The eye symbol resides above old highs - a place where liquidity would be resting in the form of buy-stops. Think of the sellers who are making money selling short, were would there stops be? Exactly, where old highs reside! Those are our short term targets. Interesting to see what happens.
NSE:EDELWEISSLong
by KnowledgeAndProfits
India INDY ETF bounced off supportAn interesting observation here... The weekly chart for INDY has recent bullish candlestick patterns after bouncing off a long term support level at 41.50. This is the second test in 2022, and the bounce closed above the next (gap) resistance level, above 43. The technical indicators are turning bullish, as RPM tuned up for a crossover. The daily chart shows the past two weeks series of higher lows and higher highs and a gap up, marubozu-like candlestick. Technical indicators crossed over bullish, and are supportive of a test on the EMA band. Taken together, there appears to be a 8-15% upside off this support bounce. Interesting time juncture... Stay well and stay safe!
NASDAQ:INDYLong
by Auguraltrader
Support breached but where would carnage stop on Nifty? Nifty finally breached 7 months old downside channel towards south which indicates more furious sell-off in coming weeks. Since last few weeks, 15900 was acting as a strong support on the indices but on Friday we have closed below the support indicating more weakness. So were would this carnage end for the bulls? The market always of probabilities in answer and so I have this time too. Checking on Elliot wave, I feel we are into corrective wave C which could end now either at 15450 (considering Wave A=Wave C) or at 14800 (considering Wave C= 123.6% of Wave A). Though chances of taking support at 15450 are little bit brighter because it coincides with other EW guideline which states that corrective WAVE shouldn't trade below motive wave 1's high which is 15431. Please note that its just a guideline and Nifty could even test the second possibility so trade accordingly. P.S. Sell on rise still considerable for short term traders with SL at 16500.
NSE:NIFTYShort
by KushGhodasara
Next week is the last ray of hope for the bulls! Last week came like a brain freeze for traders where we saw tremendous volatility on both side but ultimately bears got the final hold. In my last two posts on #Nifty, we predicted a correct Wave C to unfold and that what exactly happen in last week. We are moving towards a near term target of 16100 on indices. But next week is crucial because we MIGHT test 15900 which is a downward trending channel support and also the last ray of hope for the bulls. If we trade below the channel then be ready for a night more on the Nifty... P.S. Just a warning for the bulls !
NSE:NIFTYShort
by KushGhodasara
Nifty's Daily Chart AnalysisHere I brings you the daily chart analysis of NSE:NIFTY Going back to 23 march 2020 Nifty 50 found a strong support of a trendline and never go below that trendline until 23 November 2021. But on 22 Nov 2021 , it gone below the trendline but still managed to close above trendline. on 23 Nov 2021 it opens below the trendline but closed above it. similar story for 24th and 25th November But 26th November was the day when Nifty Opens below the trendline and closed far below it... that was the day since nifty never gone above it. On 12th, 13th, 14th and 17th January 2022 it again tried to go above the previous ( Solid Dark ) trendline but failed to do so, and pushed below the newly formed downward trendline ( Dotted Trendline ). Nifty again tried to cross above the new trendline on 2nd and 10th February 2022 , but failed. From last six days Nifty continuously trying to go above the dotted line but every time it got rejections . Conclusion of Analysis:- 1. Nifty may remain in the downtrend until it crosses the dotted trendline and sustain above it. 2. If it succeed to cross above the dotted trendline, Nifty may remain in a sideways trend until it breakout the 17800 zone. This Analysis is not a trade recommendation, this study is purely for education purpose only, Do your own Study and Research before getting into any trades.
NSE:NIFTY
by Abhi_The_Chart_Reader
Still you "banking" on Banks ?Bank Nifty has been also working in line with Nifty around 200 day SMA but interesting part on this was that it has been completely below the average for last 10 trading sessions. Strong earnings on ICICI Bank and Axis Bank didn't lead up the sector which shows that how strongly 200 day SMA is working as resistance. Now analyzing further move with Elliot wave then we have initiated our move on Wave C since the high point at 36718 and this move could end near to 33470 which is arrived by calculating it equally to Wave A from 38759-35511. P.S. Stop loss can be kept at 36950 which is 200 days SMA while reward is 2500+ points.
NSE:BANKNIFTYShort
by KushGhodasara
That's how market respects 200 Day Average!Nifty has been around in a range since last 10 trading sessions but during that it has respected 200 day average perfectly around 17200 level. It has closed at or below 200 day average for 9 sessions out of last 10 . For a technical breakout , its a guideline that we should sustain for two consecutive days on closing basis above breakout level for a confirmation and that is why that one day could be considered as false breakout. Yesterdays closing has been again way below 200 day average and volumes on future were comparatively higher which opens the gate for more downside. Considering Elliot Wave, we are into corrective wave and it seems we have completed Wave B yesterday at 17399 . Now we are into Wave C which could be equal in length of Wave A and we might see 1270 points correction from 17399 i.e., to 16150. And if we analyze worst case then we can test downside trend line on channel which could be at 15900. P.S. Stop loss for short trade is just 360 points away at 17468 while again is approximately 1000 points.
NSE:NIFTYShort
by KushGhodasara