RIL shares slip pausing 4-session climb; should you buy this dip?

Shares of Reliance Industries Ltd (RIL) slipped in Wednesday's trade, snapping their four-session upmove. Last checked, the stock fell 0.45 per cent to trade at Rs 1,234.35. At this price, it has declined 8.84 per cent in the last six months.

The Indian conglomerate recently said its step-down subsidiary Nauyaan Tradings Pvt Ltd has completed the acquisition of a further 10 per cent equity stake in Nauyaan Shipyard Pvt Ltd for Rs 51.72 crore from Welspun Corp Ltd. Before this, RIL said it would invest Rs 65,000 crore to establish 500 compressed bio-gas (CBG) plants across Andhra Pradesh.

A few market experts largely suggested that investors can stay invested in the counter and consider fresh buying on dips.

"RIL is a stock which should be in your portfolio. Any corrections should be bought into. Stay invested as the company is foraying into so many verticals which will be unfolded over the next 3 to 5 years. New energy is one segment in which 8-9 months down the line you will see it delivering both topline and bottomline numbers. Investors can take fresh positions at current levels," Dharmesh Kant, Head of Equity Research at Cholamandalam Securities, told Business Today.

"One should continue to hold on to Reliance Industries shares as things are moving in fine for this company. Rs 1,300-1,325 are the immediate resistance levels. The stock is more likely to surpass the mentioned range this month only. When that happens, it will open the gates for further upmove towards Rs 1,400-plus levels," said Gaurav Sharma of Globe Capital.

On technical setup, the scrip traded higher than the 5-day and 10-day simple moving averages (SMAs) but lower than the 20-day, 30-, 50-, 100-, 150-day and 200-day SMAs. Its 14-day relative strength index (RSI) came at 50.23. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The index heavyweight stock has a price-to-equity (P/E) ratio of 47.27 against a price-to-book (P/B) value of 3.19. Earnings per share (EPS) stood at 26.11 with a return on equity (RoE) of 6.74. According to Trendlyne data, RIL has a one-year beta of 1.2, indicating high volatility.

As of December 2024, promoters held a 50.13 per cent stake in the Mukesh Ambani-led company.