Anil Ambani group stocks Reliance Power, Reliance Infra rally 5%. Here’s what’s unfolding

Core Viewpoint - Reliance Power and Reliance Infrastructure stocks have rebounded by up to 5% despite facing legal challenges and weak technical indicators, following a significant decline of nearly 30% over the past three months [9]. Financial Performance - Reliance Power reported a profit of Rs 44.68 crore for the June quarter, recovering from a loss of Rs 97.85 crore a year earlier, although revenue fell by 5.3% to Rs 1,885.58 crore [5][9]. - Reliance Infrastructure earned Rs 59.84 crore compared to a loss of Rs 233.74 crore last year, but sales decreased nearly 18% to Rs 5,907.82 crore [5][9]. Stock Performance - Over the past year, Reliance Power has increased by 52% and Reliance Infra by 20%, but both have seen a significant drop from their May peaks, where they had rallied 173% and 141% respectively [9]. - Reliance Infra is trading below seven of its eight key simple moving averages, with a Relative Strength Index (RSI) of 34, indicating bearish pressure [2][9]. - Reliance Power is trading above five of its eight simple moving averages, with an RSI of 42.9, also reflecting bearish undertones [3][9]. Legal Challenges - The Enforcement Directorate has filed a new case against Ambani under the Prevention of Money Laundering Act, alleging fraud against the State Bank of India exceeding Rs 2,900 crore [5][9]. - Ambani has denied all allegations, claiming he has been "selectively singled out" regarding issues from over a decade ago [5][9]. Recent Developments - Reliance Power secured a 500 MW/1000 MWh Battery Energy Storage System contract from the Solar Energy Corporation of India, marking its entry into renewable storage [6][9]. - Reliance Infra won a 390 MW solar power plus 780 MWh battery storage project from NHPC, indicating a shift towards clean energy [6][9]. Outlook - Analysts suggest that Reliance Infra's performance in the next two quarters will depend on execution in EPC projects, arbitration cash inflows, and cost controls [7][9]. - The future trajectory of Reliance Power is contingent on stable operations at its Sasan and Rosa plants and timely payments from distribution companies [7][9].