What should be the winning strategy at Reliance counter tomorrow?
Call for 16 May 2025.
Technical Analysis Report – Reliance Industries Ltd.
Current Market Price (CMP): Rs. 1,454
Key Technical Levels
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Resistance Levels:
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R1: Rs. 1,473 – Immediate resistance; a breakout may indicate short-term bullish continuation.
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R2: Rs. 1,491 – Next resistance zone; crossing this could lead to a stronger rally.
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R3: Rs. 1,540 – Major resistance; potential target in an extended uptrend, also a zone for possible profit booking.
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Support Levels:
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S1: Rs. 1,424 – Near-term support; must hold to maintain bullish structure.
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S2: Rs. 1,394 – Important support; break below this could indicate short-term weakness.
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S3: Rs. 1,345 – Critical support zone; breach may lead to a trend reversal.
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Momentum Indicators
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RSI (Relative Strength Index): 69.58
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Indicates strong bullish momentum.
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Very close to overbought zone (above 70); may warrant caution for fresh long entries.
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Stochastic RSI: Positive
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Suggests strong buying pressure and continued upward momentum.
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Stochastics: Positive
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Confirms the current uptrend and strength in price movement.
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MACD Line: 46 vs. Signal Line: 43
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Positive crossover of MACD over the Signal Line reflects bullish sentiment.
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Rising MACD line confirms momentum is gaining pace.
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Trend Outlook
Reliance is exhibiting a strong uptrend, supported by:
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A bullish MACD crossover.
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Positive stochastic indicators.
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RSI nearing overbought, indicating high momentum but also potential for consolidation or mild pullback.
If price sustains above Rs. 1,473 (R1), there is scope for a move toward Rs. 1,491 and eventually Rs. 1,540.
However, a dip below Rs. 1,424 (S1) may invite short-term selling, with next support at Rs. 1,394.
Trading Strategy Recommendations
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Bias: Bullish, but monitor closely due to RSI near overbought territory.
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Breakout Strategy: Consider long entries above Rs. 1,473 with targets of Rs. 1,491 and Rs. 1,540.
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Risk Management: Maintain a stop-loss below Rs. 1,424 for new trades.
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Profit Booking: Gradual profit booking recommended near Rs. 1,540 if reached quickly.
Conclusion
Reliance is technically well-positioned for further upside, supported by strong momentum and bullish indicators. While the stock is near overbought levels, the overall trend remains positive. Traders should look for a breakout above Rs. 1,473 for confirmation of the next leg up while managing risk at key support zones.
What are Latest & Breaking News on Reliance Industries?
UBS maintains Reliance Industries at ‘buy’ with a price target of Rs. 3.00K
An analyst from UBS maintained Reliance Industries (NS: RELI) at ‘buy’ with a price target of Rs.3.00K from a prior price target
Prior to this rating, Reliance Industries had 29 buy ratings, 2 hold ratings, and 2 sell ratings.
Reliance Industries continues to be on Jefferies ‘Buy’ list with price target of Rs 2,990 (7Dec 23 update)
Jefferies has recommended a ‘Buy’ call on Reliance Industries, with a target price set at Rs 2,990 per share. The recommendation comes in anticipation of Reliance Industries’ ambitious plans to commission Phase I of its photovoltaic (PV) module and storage capacity by mid-calendar year 2024.
Jefferies acknowledges the challenges faced by the global renewable equipment sector due to Chinese overcapacity, which has impacted profitability. However, the brokerage firm remains optimistic about the outlook for Reliance Industries, citing several factors that could positively influence the company’s renewable ventures.
FII holding in RIL rebounds from 26-qtr low
Foreign investors raised their holding in RIL for the first time in six quarters in the three months ended June, albeit marginally. Their stake in the company rose to 22.55% as of June end, from a 26-quarter low of 22.49% in the preceding quarter, shareholding data showed.
That FIIs remain the lifeline for RIL stock even though mutual funds acted as the life support system in the last few quarters is evident from the stock performance.
In the June quarter, the stock net gained more than 9%, recouping all of the losses it made in the preceding quarter.
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