What should be the winning strategy at Reliance counter tomorrow?
Call for 6 May 2025.
Technical Analysis: Reliance Industries Ltd. (RIL)
Current Market Price (CMP): Rs.1431
Key Technical Indicators:
- Resistance Levels: R1 Rs.1438 | R2 Rs.1445 | R3 Rs.1458
- Support Levels: S1 Rs.1425 | S2 Rs.1420 | S3 Rs.1407
- RSI (Relative Strength Index): 79.26 (Overbought)
- Stochastic RSI: 100 (Extremely Overbought)
- MACD Line: 45
- Signal Line: 26
- MACD Histogram (MACD – Signal): Positive (Bullish Momentum)
Analysis:
- Overbought Momentum:
The RSI at 79.26 and Stochastic RSI at 100 indicate that the stock is currently in a heavily overbought zone. Historically, such levels suggest the possibility of a short-term pullback or consolidation, especially if not supported by strong volume or news flow. - MACD Trend:
The MACD line is significantly above the Signal line, with a positive spread, indicating strong bullish momentum. This confirms that the recent price trend has been upward, and the momentum remains intact for now. - Price Action vs. Resistance Levels:
With CMP at Rs.1431, the stock is nearing its first resistance at Rs.1438. A breakout above this level with strong volume could lead to a further move towards Rs.1445 and Rs.1458. However, failure to cross R1 convincingly may lead to a short-term pause or minor correction. - Support Watch:
On the downside, Rs.1425 (S1) serves as immediate support. A breach below this could open the path to Rs.1420 or deeper correction to Rs.1407.
Conclusion:
Reliance is showing strong bullish momentum technically, but key momentum indicators (RSI & Stochastic RSI) are flashing overbought warnings, suggesting a possible near-term pause or mild correction. Traders holding long positions should consider trailing stop-losses, while fresh entry should ideally be considered on a pullback near support zones or after a clear breakout above Rs.1445 with volume confirmation.
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.
Quicklinks
