RIIL shares soar 11% to trade near one-year high level; here's what analysts say

Shares of Reliance Industrial Infrastructure Ltd (RIIL) saw a strong upward move in Friday's trading session. The stock surged 10.71 per cent to hit a day high of Rs 1,598. At this price, it was just 0.37 per cent down from its one-year high of Rs 1,604, a level seen earlier this year on January 12. That said, the multibagger scrip has gained 121.02 per cent compared to its 52-week low value of Rs 723, hit on March 28, 2023.

Technical analysts largely suggested that the counter has immediate resistance around its one-year high level of Rs 1,604. And, a decisive closing above the mentioned resistance zone is required for further upside. On the other hand, near-term support will be at Rs 1,535.

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "The stock has witnessed a gradual rise in the last four months. Near-term barrier will be at Rs 1,605 and a decisive breach above this level can only trigger a fresh up move for next targets of Rs 1,700-1,820 in the coming days. Major support will be at Rs 1,360."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 1,535 and resistance at Rs 1,604. A close above the said resistance level may trigger a further upside till Rs 1,650."

DRS Finvest founder Ravi Singh said, "Traders can expect a near-term target price of Rs 1,650. Keep a strict stop loss at Rs 1,500."

The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-, 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 65.04. 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 116.61 against a price-to-book (P/B) value of 5.46. Earnings per share (EPS) came at 12.38 with a return on equity (RoE) of 4.68.

RIIL is a part of Reliance Industries. As of December 2023, promoters held 45.43 per cent stake in the company.

(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)

 

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