What should be the winning strategy at Reliance counter tomorrow?
Call for 9 May 2025.
Technical Analysis Note – Reliance Industries Ltd. (CMP Rs.1407)
- Support & Resistance Levels:
- Immediate Resistance (R1): Rs.1419 – Just above CMP, this level poses the first short-term hurdle.
- Higher Resistances:
- R2: Rs.1431 – Break above R1 may target this level.
- R3: Rs.1454 – Stronger resistance, indicating potential for a bullish breakout if crossed.
- Immediate Support (S1): Rs.1397 – First line of defense if price dips.
- Lower Supports:
- S2: Rs.1385 – A crucial level; break below may increase selling pressure.
- S3: Rs.1363 – Strong base zone.
- Relative Strength Index (RSI): 70.88
- RSI above 70 indicates the stock is in overbought territory, suggesting potential for a short-term pullback or consolidation.
- However, a strong RSI also confirms upward momentum.
- Stochastic RSI: Positive
- Indicates bullish sentiment and confirms price strength.
- Suggests buyers are in control, especially if it’s crossing above key levels or signal lines.
- MACD Analysis:
- MACD Line: 47 | Signal Line: 36 – Since the MACD line is well above the signal line, it confirms a bullish crossover.
- Indicates strong positive momentum and trend continuation.
Conclusion:
The overall technical setup for Reliance appears bullish in the short term, supported by positive momentum indicators (MACD & Stochastic RSI). However, the RSI being over 70 warrants caution, suggesting a possible near-term consolidation or minor pullback before any further rally.
- A sustained move above Rs.1419 can lead to a test of Rs.1431 and potentially Rs.1454.
- Break below Rs.1397 could see a correction toward Rs.1385 or Rs.1363.
Trading View:
- Bullish Bias above Rs.1397 with strict stop-loss.
- Caution advised at higher levels due to overbought RSI.
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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