RIL shares hit four-month high, overbought on charts; what should investors do?

Shares of Reliance Industries Ltd (RIL) hit their four-month high on Tuesday after the market heavyweight rose for the second straight session post Q4 earnings. RIL shares gained 6.5% or Rs 85 this week on BSE. Market cap of the firm rose to Rs 18.94 lakh crore in the current session. 

With the current leg of rally, the RIL stock has gained 25.55% from its 52-week low of Rs 1155.5 reached on April 7, 2025. The large cap stock hit a 52 week high of Rs 1608.95 on July 8, 2024. 

RIL shares are overbought on charts with a RSI of 73.1 . A RSI value above 70 indicates a stock is oversold and below 30 indicates that the stock is oversold on charts. 

In terms of moving averages too, RIL stock is looking strong as it is trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

In the current session, RIL shares closed 2.32% higher at Rs 1400.30 against the previous close of Rs 1368.50 on BSE. Total 64.15 lakh shares of the firm changed hands amounting to a turnover of Rs 900.85 crore on BSE today. 

 Brokerage Motilal Oswal has a buy call on the RIL stock with a target price of Rs 1,515. 

The brokerage has modelled a CAGR of 13%-14% EBITDA/PAT over FY25-27, led by a robust 21% EBITDA CAGR in Reliance Jio and growth recovery in retail. 

However, the brokerage has lowered its FY26-27E EBITDA/PAT by 2% each due to cuts in Reliance Jio and E&P. "We model a CAGR of ~13-14% EBITDA/PAT over FY25-27, driven by a robust 21% EBITDA CAGR in RJio and growth recovery in Retail," said Motilal. 

YES Securities has announced a price target of Rs 1,550 for the RIL stock. "The O2C contributes Rs343, upstream Rs 92, and Jio platforms and Retail at Rs 442/690. New Energy piece adds Rs 64 and a reduction of Rs 80 of net debt," said the brokerage. 

 Another brokerage Nuvama has a buy call on the stock with a target price of Rs 1708. 

Nuvama said RIL started its first line of HJT module manufacturing facility of 1GW, which can be scaled up fast in phases to fully integrated 10GW by early-2026. The backward integration includes polysilicon. 

"We feel RIL may initially sell modules in the lucrative domestic market; internal consumption for solar power at scale targeted by FY27E. Given Waaree’s and Premier Energies’ capacity and profits, we reckon RIL’s DCR modules could generate Ebitda of Rs 6,000 crore on 10GW facility conservatively (4 per cent of FY25 Ebitda). RIL plans to set up 30GWh battery facility; container manufacturing to start soon. RIL targets 55 CBG plants," it noted.