Shares of Reliance Industries Ltd rose nearly 6% to a record high today as stock market took into account the third consecutive term for PM Narendra Modi. The stellar rally in the stock market post the exit poll results sent the large cap scrip to a fresh high on Monday.
RIL stock ended 5.65% higher at Rs 3026.50 on BSE. RIL shares rose 5.95% intraday to a high of Rs 3029. Market cap of the Mukesh Ambani-led conglomerate rose above the Rs 20.47 lakh crore on BSE.
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RIL stock has risen 17% in 2024 and gained 33.57% in a year. It has seen low volatility in one year with a beta of 0.2.
RIL stock is neither oversold nor overbought on technical charts with its relative strength index (RSI) at 45.6.
Reliance Industries shares are trading higher than the 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages, signaling the stock is trading in a bullish zone.
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Elara Securities believes RIL can touch price target of Rs 3,354. The brokerage has raised the FY25 and FY26 EPS outlooks to 4% and 5%, respectively, on the back of refining outlook due to limited refining supply addition versus demand growth.
Gaurav Bissa, VP, InCred Equities said, “Reliance Industries witnessed a strong breakout from a rising channel pattern in January 2024 around Rs 2650 levels which catapulted the price toward Rs 3000 levels. However, it entered into a consolidation phase in the last few weeks underperforming its peers. While in consolidation, it formed a bullish flag pattern on the daily charts and witnessed a breakout at Rs 2975 level, which can push it towards Rs 3200-3300 levels in the near term. Similar breakout in RSI as well as prices trading above ichimoku cloud on the daily charts is likely to keep the momentum strong in the coming days.”
Jigar S Patel , senior manager of equity research at Anand Rathi said, “The support will be at Rs 2900 and resistance at Rs 3030 A decisive close above the Rs 3030 level may trigger a further upside to Rs 3100. The expected trading range will be between Rs 2850 and Rs 3150 for short-term.”
Aditya Agarwal, Head Derivatives & Technical at Sanctum Wealth said, “Reliance Industries has been trading within a broad range of Rs 2800- Rs 3000 since February 2024. During Monday’s session, the stock broke above this range and closed higher. Our short to medium-term outlook remains optimistic for the stock, and we see potential for further upside. Traders may consider initiating fresh long positions in Reliance at current levels or on any pullback towards Rs 2960. Upside targets are set at 3140/3200 levels, with a suggested stoploss placed below Rs 2840 to manage risk.”
UBS has a target of Rs 3,250 on the stock. UBS said investors are not pricing in retail’s revenue growth potential from rapid store expansion, e-B2B revenue growth and private labels. The consensus seems to under-appreciate the upcoming integrated manufacturing ecosystem for new energy business.
Nuvama Institutional Equities has a target of Rs 3,205 on the stock.
