RIL shares rise 38% from October 2023 low; buy, sell or hold?
RIL shares rise 38% from October 2023 low; buy, sell or hold?
Shares of Reliance Industries Ltd (RIL) have surged 38% from their October low during the current phase of record run the Mukesh Ambani-led conglomerate is witnessing on the bourses. The stock, which closed at Rs 2,226.50 on October 26, rose to an all-time high for the second straight session amid a rally in Sensex and Nifty on Thursday. Analysts said the stock has broken out from its consolidation phase.
Reliance Industries shares hit an all-time high of Rs 3072.60, rising 1.13% against the previous close of Rs 3027.40 on BSE. Total 1.50 lakh shares of the firm changed hands amounting to a turnover of Rs 45.58 crore on BSE. Market cap of the conglomerate rose to Rs 20.73 lakh crore.
On Wednesday, the stock hit a record high of Rs 3037 on Sensex and closed as the top gainer on the 30-stock index.
RIL stock has gained 18.10% this year and risen 32% in the last one year. In terms of technicals, the relative strength index (RSI) of RIL stock stands at 60, signaling it's trading neither in the oversold nor in the overbought zone. The stock has a beta of 1, indicating average volatility in a year. RIL shares stand higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
Kushal Gandhi, Technical Analyst, StoxBox said, "The price movement of Reliance Industries experienced a significant increase from its 50-day moving average support following a brief accumulation phase in recent trading sessions. The stock displayed a bullish breakout after breaking above the sideways channel, which formed over 75 trading sessions. There has been a noticeable increase in buyer demand and EPS strength for the stock. We suggest purchasing Reliance with a target price of Rs 3339 and a protective stop at Rs 2889."
Mandar Bhojane, Equity Research Analyst at Choice Broking said, "The current trading price of Reliance is Rs 3028. The stock has recently broken out of daily range with a significant increase in trading volume, indicating a potential breakout. If the price manages to close above the Rs 3030 level, it may have the potential to reach short-term targets of Rs 3330. On the other hand, immediate support levels are located at Rs 2950. These levels can be considered as opportunities to buy on dips. The Relative Strength Index (RSI) currently stands at 60.4 and is trending upward, indicating increasing buying momentum. To prudently manage risk, it is advisable to set a stop-loss (SL) at Rs 2870."
Gaurav Bissa, VP, InCred Equities said, “Reliance has been trading in a consolidation phase, which resulted in some underperformance against its peers. However, it has now approached a critical resistance and a close above Rs 3030 will result in a box breakout which can push the price towards Rs 3150-3200 levels. This is supported by a bullish MACD crossover on daily charts and a close above 62 in RSI can result in a falling channel breakout which can push it towards 70 levels which in turn can push the stock price towards Rs 3,200."
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