The stock of Reliance Power has been trading in an upward trend since March 18 on news of settling its debts. The stock on Tuesday hit the upper circuit (4.9 per cent) at ₹30.33 on the BSE.

The company announced settling of dues with ICICI Bank, Axis Bank and DBS Bank.

On March 27, Reliance Power subsidiaries, Kalai Power Private Ltd and Reliance Cleangen Ltd, signed a debt settlement and discharge agreement with the wholly owned subsidiary of Authum Investment and Infrastructure Ltd for the outstanding consolidated debt of ₹1,023 crore.

The company, in a stock exchange disclosure on March 28, stated its wholly owned subsidiaries—Rosa Power Supply Company Ltd and Tato Hydro Power Private Ltd—have entered into agreements with Reliance Velocity Ltd, a wholly owned subsidiary of Reliance Infrastructure Ltd, the promoter company, for lending secured borrowings in tranches in the form of inter-corporate deposits aggregating to ₹425 crore.

Pursuant to the settlement of obligations with DBS Bank, the company’s assets of 45 MW wind power project were free from encumbrance. The company entered into a sale agreement with JSW Renewable Energy, pertaining to the 45 MW wind power project in Maharashtra for ₹132 crore.

According to technical analysts, the short-term trend for the stock remains bullish.

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said the stock has given a breakout above ₹25 and made a 5-year high of ₹33.

“From the high, it has retraced 78.6 per cent level of ₹19.50 with a higher bottom formation. The stock has given a strong pullback and a decisive breach above ₹33 zone, which shall confirm the breakout for further rise anticipated with indicators beginning to show strength. Further upside targets can be expected until Rs 39 and further ahead at Rs 44 levels in the coming days. One can watch for this stock with the near-term support at around Rs 22 zones below which the trend can turn weak,” the analyst said.