Reliance Industries shares climb 3% to settle above Rs 2,500 today; here's what analysts say

Shares of Reliance Industries Ltd traded higher for the second consecutive session on Friday. The stock today rose 2.79 per cent to close at Rs 2,506.55. The upward trend came after global brokerage Bernstein estimated that Reliance Retail and Jio would claim the lion's share of the country's $150-plus billion e-commerce marketplace in the long term.

On a year-to-date (YTD) basis, the counter has slipped 2.66 per cent compared to the benchmark Sensex's 2.18 climb. On the earnings front, Reliance reported a 19 per cent jump in its March 2023 quarter (Q4 FY23) profit, at Rs 19,299 crore, as against Rs 16,203 crore in the same period a year ago.

Technical analysts suggested that support on the counter could be seen at Rs 2,440, followed by Rs 2,420, Rs 2,415, Rs 2,410 and Rs 2,400 levels. On the other hand, resistance may be faced at Rs 2,510 and Rs 2,550 levels.

Osho Krishan, Senior Analyst - Technical & Derivative Research at Angel One, said, "In the last couple of trading sessions, the counter has seen traction from the strong support of the Rs 2,400-odd zone. Sustainable buying in the follow-up sessions could boost the momentum in the near period. As far as levels are concerned, the Rs 2,440-2,420 zone is likely to act as immediate support. If it holds Rs 2,500, then the counter may trigger the next leg of rally in the counter in a comparable period."

Deven Mehata, Equity Research Analyst at Choice Broking, said, "The stock has strong support at Rs 2,410. And, a small resistance near Rs 2,510 levels could be witnessed. Once the stock maintains a higher level than Rs 2,510, it may advance upward and approach the Rs 2,600 level. The RSI indicator is comfortably trading at 65 levels which indicates that the stock has the potential to move upwards. On weekly charts, it has managed to cross the prior week's open levels which makes the stock form a 'Bullish engulfing pattern', indicating strength for further up-move. We recommend buying Reliance at current levels and it can be added on dips at Rs 2,450 for a medium-term outlook, while keeping a stop loss placed at Rs 2,410 for targets of Rs 2,610-2,650."

Pravesh Gour, Senior Technical Analyst at Swastika Investmart, said, "RIL has witnessed a breakout of an inverse head and shoulders formation on the longer timeframe with strong volume. It suggests a potential bullish reversal in the counter. The strong volume indicates increased buying interest and confirms the significance of the breakout. The stock has a psychological resistance level of Rs 2,550. If the share price manages to break above the Rs 2,550 resistance level with conviction, then an increased bullish momentum could be seen. In the near term, the stock could lead to a target price of Rs 2,600 or even higher. On the downside, if there is a correction, the major support level is identified at Rs 2,415."

Reliance is the country's biggest company by market capitalisation (m-cap). Turnover on the counter stood at Rs 65 crore, commanding a market cap of Rs 16,95,833.65 crore. Around 2.61 lakh shares changed hands today, which was more than twice the two-week average volume of 1.05 lakh shares.

Meanwhile, Indian equity benchmarks rose sharply today, led by gains across all sectors. The 30-share BSE Sensex pack jumped 629 or 1.02 per cent to close at 62,502, while the broader NSE Nifty index moved 178 points or 0.97 per cent higher to settle at 18,499.

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