Shares of Reliance Industries Ltd (RIL) soared nearly 6% to a record high following market reactions to predictions of Prime Minister Narendra Modi securing a third consecutive term. The rally, driven by exit poll results, propelled the large-cap stock to new heights on Monday.
Record-Breaking Performance
RIL’s stock closed 5.65% higher at Rs 3026.50 on the Bombay Stock Exchange (BSE), after reaching an intraday high of Rs 3029. The market capitalization of the Mukesh Ambani-led conglomerate surged past Rs 20.47 lakh crore. This year, RIL’s stock has risen by 17% and has gained 33.57% over the past year, exhibiting low volatility with a beta of 0.2.
Technical Indicators Signal Bullish Trend
On technical charts, RIL’s stock is neither oversold nor overbought, with its relative strength index (RSI) at 45.6. The shares are trading above their 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day moving averages, indicating a strong bullish trend.
Elara Securities
Elara Securities has set a price target of Rs 3,354 for RIL, raising the FY25 and FY26 EPS outlooks by 4% and 5%, respectively, due to a favorable refining outlook amidst limited supply additions and growing demand.
InCred Equities
Gaurav Bissa, VP at InCred Equities, noted that RIL experienced a significant breakout from a rising channel pattern in January 2024 at around Rs 2650, which pushed the price toward Rs 3000 levels. After a period of consolidation, the stock formed a bullish flag pattern on daily charts and broke out at Rs 2975, potentially driving it towards Rs 3200-3300 in the near term. This breakout is supported by a similar pattern in the RSI and prices trading above the Ichimoku cloud, indicating sustained momentum.
Anand Rathi
Jigar S Patel, senior manager of equity research at Anand Rathi, identified support at Rs 2900 and resistance at Rs 3030. A decisive close above Rs 3030 could trigger further gains up to Rs 3100, with a short-term trading range expected between Rs 2850 and Rs 3150.
Sanctum Wealth
Aditya Agarwal, Head of Derivatives & Technical at Sanctum Wealth, pointed out that RIL had been trading within a broad range of Rs 2800-3000 since February 2024. The recent breakout above this range suggests a positive short to medium-term outlook, with upside targets of Rs 3140/3200. Traders are advised to consider fresh long positions at current levels or on pullbacks towards Rs 2960, with a stop loss below Rs 2840 to manage risk.
UBS
UBS has set a target of Rs 3,250, highlighting that investors are not fully accounting for RIL’s retail revenue growth potential from rapid store expansion, e-B2B revenue growth, and private labels. Additionally, the upcoming integrated manufacturing ecosystem for the new energy business is underappreciated by consensus.
Nuvama Institutional Equities
Nuvama Institutional Equities has a target of Rs 3,205 for RIL, further underlining the positive sentiment surrounding the stock.
The bullish outlook on Reliance Industries reflects strong market confidence in its growth potential, driven by favorable technical indicators and optimistic analyst predictions. As Prime Minister Modi’s anticipated election victory adds to the positive sentiment, investors are closely watching RIL’s next moves in the stock market.