Reliance Infrastructure shares hit one-year high, up 41% in 3 sessions; here's what analysts say

Shares of Reliance Infrastructure Ltd continued their strong upward move for the third straight session in Monday's trade. The stock jumped 9.92 per cent to hit a one-year high of Rs 260.80. At this price, it has surged 40.63 in three trading days.

The company, in a recent BSE filing, said, "Reliance Infra, in the capacity of a corporate guarantor to the financial facility availed by its associate company, Reliance Power Ltd (RPower), has, along with RPower, signed a settlement agreement with ICICI Bank on March 14, 2024. The entire obligation with respect to borrowings of RPower with ICICI has been settled by RPower and accordingly any and all potential obligations of the Company with respect to the corporate guarantee stands extinguished."

On technical setup, support on the counter could be seen at Rs 248, followed by Rs 235 level. And, immediate resistance will be at Rs 265.

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 235 and resistance at Rs 265. A decisive close above Rs 265 level may trigger a further upside till Rs 275. Expected trading range will be between Rs 220 and Rs 280 for a month."

DRS Finvest founder Ravi Singh said, "The stock is looking strong on daily charts and may see Rs 265 level in the near term. Keep stop loss placed at Rs 248."

The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The stock's 14-day relative strength index (RSI) came at 56.06. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a negative price-to-equity (P/E) ratio of 2.58 against a price-to-book (P/B) value of 1.25. Earnings per share (EPS) stood at (-)91.98 with a return on equity of (-)48.32.

The counter saw heavy trading volume today as around 8.10 lakh shares were changing hands on BSE. The figure was higher than the two-week average volume of 3.56 lakh shares. Turnover on the stock came at Rs 20.39 crore, commanding a market capitalisation (m-cap) of Rs 10,200.38 crore.

The firm is engaged in the business of providing engineering and construction services for power, roads, metro rail, and other infrastructure sectors.