Reliance Industries Limited Shares Soar, Eyes Set on Rs 3,000 Milestone

Reliance Industries Limited (RIL) witnessed a 0.36% surge as its shares closed at Rs 2,606 on January 5, surpassing the previous day’s closing figure of Rs 2,597.40 on the Bombay Stock Exchange (BSE).

Reliance Industries shares are in a bullish zone, trading higher than the 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day moving averages, signaling positive market momentum.

SUMMARY

Reliance Industries touched its 52-week low on March 20, 2023, recording a value of Rs 2012.14.

Reliance Industries has experienced a remarkable surge, gaining 29.51% from its 52-week low.

The stock has shown consistent growth, recording an impressive 12.36% rise over the past year.

Reliance Industries demonstrates stability with a low one-year volatility, as reflected by its beta of 0.2.

Reliance Industries Ltd (RIL) shares are making headlines as they approach their record high at the beginning of 2024.

The stock had experienced a roller-coaster ride in 2023, hitting an all-time high of Rs 2,635.17 on July 19, 2023, and a 52-week low of Rs 2012.14 on March 20, 2023.

Despite this volatility, RIL ended the trading session on January 5, 2024, at Rs 2,606, marking a 0.36% increase from the previous close of Rs 2,597.40 on the Bombay Stock Exchange (BSE).

Reliance Industries stock has witnessed a robust 29.51% gain from its 52-week low, with a commendable 12.36% rise over the past year. Notably, the stock exhibits low volatility, marked by a beta of 0.2.

Reliance Industries shares are displaying a balanced market stance, as indicated by the relative strength index (RSI) at 68.8.

The stock is neither oversold nor overbought, reflecting a measured market sentiment. Additionally, trading above key moving averages—10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day—further reinforces the stock’s position in the bullish zone.

During the last trading session, Reliance Industries shares experienced an intraday low of Rs 2597.95 on Friday. The market cap of Reliance Industries reached Rs 17.63 lakh crore on the Bombay Stock Exchange (BSE). A total of 4.66 lakh shares of the company changed hands, resulting in a turnover of Rs 121.30 crore on the BSE.

ICICIdirect Forecasts Reliance Industries Stock to Hit Rs 3050 in Medium Term

ICICIdirect, in a recent statement, highlighted that Reliance Industries has weathered various challenges, forming a robust base around the rising 100-week Exponential Moving Average (EMA) at Rs 2,235, a level sustained since 2017, excluding the Covid-induced fall.

The brokerage firm asserts that the stock is poised to reach Rs 3,050 in the medium term, derived from the measured implications of the range between March 22 and July 23, added to the current level of Rs 2,600.

ICICIdirect highlights Reliance Industries’ transition from a two-year consolidation phase, following a robust rally in 2020-21.

The brokerage firm anticipates the stock to step back into the limelight, poised to lead Nifty in 2024.

Structural analysis reveals that the corrective phase over the past two years retraced only 38% of the preceding 18-month rally within a 26-month timeframe, indicating a resilient and robust price structure.

Morgan Stanley has expressed optimism for Reliance Industries, assigning a target of Rs 2,821 for the stock. The global brokerage envisions multiple triggers that could reverse the nearly two-year earnings downgrade cycle.

In its India Equity Strategy Outlook 2024, Morgan Stanley has included Reliance Industries in its focus list, signaling confidence in the stock’s potential upward trajectory.

Morgan Stanley highlights a shift in Reliance Industries’ strategy, citing management commentary on achieving “peak net debt” in FY24. The emphasis on funding investments from operating cash flow (OCF) and a projected slowdown in capex intensity in 2024 indicate a heightened focus on de-gearing the balance sheet, according to the global brokerage.

Morgan Stanley points out potential catalysts that could contribute to Reliance Industries’ de-gearing strategy and elevate the stock’s multiples to align with industry peers.

These catalysts include the possibility of warehousing hive-off in the retail sector, a substantial increase in retail revenues, especially in grocery sales, inventory restocking for chemicals in India, tightening in global fuel markets with China capping domestic refining capacity until 2025, and a significant step-up in gas/oil production.

These factors are crucial for Net Asset Value (NAV) expansion as net debt unwinds, supported by higher Operating Cash Flow (OCF), despite the brokerage’s projection of a $17 billion annual investment for the next three years.

Jefferies has reiterated its positive stance on Reliance Industries, maintaining a BUY recommendation on the stock. In its report, the global investment firm emphasized the company’s favorable valuation, reinforcing its confidence in the stock. Jefferies has set a price target of Rs 3,125 for Reliance Industries shares.

Jefferies Report Forecasts Strong 13% EBITDA Growth for RIL in FY25, Fueled by Jio’s Potential Two-Thirds Contribution Amid Expected Tariff Hike.

Jefferies Anticipates Lower Capital Expenditure for Jio and Retail in FY25, Bolstering Free Cash Flow and Easing Net Debt Concerns.

Prabhudas Lilladher’s Shiju Koothupalakkal Sets Rs 2,730-Rs 2,850 Target, Holds Stance on Reliance Industries; Recommends Stop Loss at Rs 2,470.

Shiju Koothupalakkal, a Technical Research Analyst at Prabhudas Lilladher, analyzes the recent performance of Reliance Industries. According to Koothupalakkal, the stock has experienced a significant uptrend over the last two months, particularly after breaking out of a descending channel. Currently approaching the previous peak level of Rs 2,630, there might be resistance in this zone.

Koothupalakkal suggests that the near-term support for the stock is expected to be around Rs 2,470. A decisive breach below this level could weaken the overall bullish bias. On the positive side, a decisive breakout above the previous peak of Rs 2,630 is seen as a potential trigger for further upward movement. If this occurs, fresh targets of Rs 2,730 and Rs 2,850 are envisioned for the stock in the medium-term time frame.

Reliance Industries Q2 Results: 29.7% Surge in Net Profit to Rs 19,878 Crore, Revenue from Operations at Rs 2.55 Lakh Crore.