Reliance Industries shares hit fresh 52-week low today, slip below Rs 2,200 mark

Shares of Reliance Industries continued to decline for the eighth straight session in Monday's trade. The counter slipped below the Rs 2,200 mark to hit fresh one-year low today. The stock fell 1.94 per cent to touch a day low of Rs 2,180 over a previous close of Rs 2,223.05. A total of 1.77 lakh shares changed hands today on BSE, which was lower than the two-week average volume of 2.90 lakh shares. Turnover on the counter stood at Rs 38.76 crore, commanding a market capitalisation (m-cap) of Rs 14,81,134.58 crore. The scrip has declined around 15 per cent so far this year.

Analysts largely remained 'bearish' on the counter. One analyst suggested that Reliance would bounce back in the long run, while another advised no fresh longs at current levels.

"Reliance Industries shares at lower levels are definitely a buy as there's no problem with the stock. Any further correction can be a good opportunity for long-time buyers to enter. Reliance will bounce back in the long run," said AK Prabhakar, Head of Research, IDBI Capital Markets.

If Reliance can maintain the Rs 2,000 level, we can expect a good bounce up to Rs 2,350-2,500 levels, said Ameya Ranadive CMT, CFTe, Equity Research Analyst at Choice Broking.

"RIL looks bearish but oversold on the daily charts. Strong resistance will be at Rs 2,304," said Pavitraa Shetty from Tips2trades.

At the current market price, fresh longs are not recommended, said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.

That said, Kotak Institutional Equities has assigned a 'Buy' rating for Reliance while pegging it at a fair value of Rs 3,000 over the next 12 months.

The stock was last seen trading lower than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages. The counter's 14-day relative strength index (RSI) came at 28.65. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 36.26.

The scrip has an average target price of Rs 2,896, Trendlyne data showed, suggesting a potential upside of 32.08 per cent. It has a one-year beta of 1.10, indicating high volatility on the counter.

Meanwhile, Indian equity indices fell sharply in late morning deals today, dragged by banks, financials, automobile, technology and metal stocks.

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