Today, shares of Mukesh Ambani’s company, Reliance Industries Ltd (RIL), went up for the third day in a row. The stock went up almost 1% during the day, from Rs 2506.55 at the end of the day to Rs 2530. The stock of Reliance Industries has gone down 1.11 percent this year and 2.14 percent in the last year. With a turnover of Rs 48.72 crore, which was one of the biggest on BSE today, 1.93 million shares of the company changed hands. At the start of trading today, the market cap of the company was Rs 17.04 lakh crore.
In terms of technicals, RIL stock’s relative strength index (RSI) is at 66.4, which means that it is neither oversold nor overbought. The stock’s beta is 1.1, which means that it will be very volatile over the next year. The 5 day, 20 day, 50 day, 100 day, and 200 day moving averages are all higher than the price of RIL shares.
Angel One’s Senior Analyst for Technical and Derivative Research, Osho Krishan, said, “In the last couple of trade sessions, the counter has gained momentum from the strong support of the Rs 2,400-odd zone. Soon, the pace could pick up if people kept buying in the next sessions. As far as levels go, the area between Rs 2,440 and Rs 2,420 is expected to act as support right away. If it stays above Rs. 2,500, it could start the next part of the counter’s rally in about the same amount of time.
“The stock has a strong support at Rs 2,410,” said Deven Mehata, an Equity Research Analyst at Choice Broking. And there could be a small amount of pushback near Rs 2,510. Once the stock stays higher than Rs 2,510 for a while, it may go up and get close to Rs 2,600. The RSI indicator is trading at a comfortable level of 65, which shows that the price could go up. On weekly charts, it has crossed over the open levels of the previous week. This is called a “Bullish engulfing pattern,” and it shows that the stock is strong enough to keep going up. We recommend buying Reliance at its current price, and it can be added on dips at Rs 2,450 for a medium-term view. Keep a stop loss at Rs 2,410 for targets of Rs 2,610-2,650.”
“RIL has witnessed a breakout of an inverse head and shoulders formation on the longer timeframe with strong volume,” stated Pravesh Gour, Senior Technical Analyst at Swastika Investmart. It means that the counter could change direction and go up. Strong volume shows that more people want to buy and proves that the breakout is important. Rs 2,550 is a psychological figure where people do not want to buy the stock. If the share price is able to break decisively above the Rs 2,550 resistance line, then there could be more bullish momentum. The stock could go up to Rs 2,600 or even higher in the near future. A key support level of Rs 2,415 has been highlighted in case of a correction.
Reliance Industries’ net profit for the March quarter went up by 19.10% year-on-year (YoY) to Rs 19,299 crore from Rs 16,203 crore in the same quarter last year. The Mukesh Ambani-led conglomerate said its income from operations for the quarter went up 2.12% year-over-year to Rs 2,16,376 crore from Rs 2,11,887 crore in the same quarter last year.