Indian Power Producer Reliance Energy Has Its Bubble Burst

Reliance Energy (REL.NS), the largest private power utility in India, today closed down $359.20, or 16.92 percent. The India BSE SENSEX (^BSESN) tumbled 1,408.35 points, or 7.41 percent, its all-time largest point loss. The declines were part of a global selloff due to nervousness about the U.S. economy.

Since making a bubble peak at $2,590 on January 7, 2008, the REL.NS has declined 31.87 percent. Currently, it is in a support zone from $1,942 to $1,332. Expect more downside from this stock.

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Posted January 21, 2008.