Reliance Industries shares hit seven-month high; buy, sell or hold?

Shares of Reliance Industries Ltd (RIL) are trading at a seven-month high, boosted by a recovery rally in the last three months. RIL stock closed at Rs 2,649 on December 8 compared to the current level of Rs 2638.35 on BSE. The stock of Mukesh Ambani-led conglomerate has zoomed 12.70% in three months, taking it close to the 52-week high of Rs 2,754.70 hit on December 1, 2022. Interestingly, the Reliance Industries stock has surged 21% from its 52-week low of Rs 2180 hit on March 20, 2023.

In the last session, RIL stock ended 2.07% higher at Rs 2638.35 against the previous close of Rs 2584.80on BSE. The stock of Reliance Industries has gained 2.45% this year and risen 9.39% in the last one year. Total 6.19 lakh shares of the firm changed hands amounting to a high turnover of Rs 162.74 crore, among the second highest on BSE on Thursday. Market cap of the conglomerate rose to Rs 17.85 lakh crore.

In terms of technicals, the relative strength index (RSI) of RIL stock stands at 68, signaling it's trading neither in the oversold nor in the overbought zone. The stock has a beta of 1.2, indicating high volatility in a year. RIL shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

Here's a look at what analysts said on the outlook of the RIL stock.

Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher said, “The stock after two days of slight sluggishness has once again indicated a positive bullish candle on the daily chart with improved bias and breaching above the peak zone of Rs 2625 levels anticipating for further rise with indicators showing strength and has a near-term target of Rs 2680 level and further improvement in the trend can carry on the momentum for further targets of Rs 2750-2780 levels. The near-term support would be maintained near Rs 2570 zone with the overall trend maintained strong.”

Abhijeet from Tips2trades said, "Reliance Industries looks bullish on the daily charts with next resistance at Rs 2741. A daily close below the support of Rs 2555 only could lead to a target of Rs 2440 in the near term."

Brokerage Systematix Institutional Research has a buy call on the RIL stock with a target price of Rs 2766.

Reliance Industries reported a 19.10 per cent year-on-year (YoY) rise in net profit at Rs 19,299 crore for the March quarter compared with Rs 16,203 crore profit in the corresponding quarter last year. The Mukesh Ambani-led conglomerate said its revenue from operations for the quarter rose 2.12 per cent YoY to Rs 2,16,376 crore compared with Rs 2,11,887 crore in the same quarter last year.

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