Shares of Mukesh Ambani-led conglomerate Reliance Industries Ltd (RIL) are trading over 17 per cent lower from their all-time high amid volatile market. RIL stock, which hit an all-time high of Rs 2,855 on April 29, 2022 was trading at Rs 2,360 on BSE today, down by Rs 495 or 17.33 per cent during the period. Shares of RIL have been losing in the last two sessions.
RIL shares are trading lower than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages. RIL stock has lost 12.4 per cent in one year and lost 0.13 per cent since the beginning of this year. Total 0.78 lakh shares of the firm changed hands amounting to a turnover of Rs 18.36 crore on BSE today.
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Market cap of the conglomerate stood at Rs 16.01 lakh crore. The share hit a 52-week high of Rs 2,855 on April 29, 2022 and a 52-week low of Rs 2,181 on March 8, 2022. The stock fell 1.18 per cent intraday to Rs 2,343.60 on BSE. At 11:29 am, the stock was trading 0.25 per cent lower at Rs 2.365.15.
Abhijeet from Tips2trades said the stock was undervalued and suggested a range of Rs 2,320- Rs 2,350 for buying purpose.
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After a stellar run during the pandemic, Reliance Iindustries stock has not given any substantial returns since the past 1 year due to a globally bearish sentiment coupled with investors’ preference of small cap and mid cap stocks over the index heavyweight. However, fundamentally, Reliance Industries looks undervalued and investors can buy near Rs 2,320- Rs 2,350 levels or on a daily close above Rs 2,430 for long-term targets of Rs 2,640- Rs 2,800 in the near term,” said Abhijeet.
Morgan Stanley has an overweight stance on RIL stock with a target of Rs 3,085. The earnings upgrade cycle is taking shape with the new investment cycle, the US-based financial services company said in a note. The supply side challenges should keep the refining margins high, the firm said. Consumer retail is seeing good traction on store additions, the note added.
Tirthankar Das, Technical & Derivative Analyst, Retail, Ashika Stock Broking said, “Prices had been falling after facing resistance around the crucial supply zone of Rs 2,650 generating from the downward sloping trendline since the start of the FY22. Amid the volatility, the stock has unfolded into a twin bearish structure, initially with a Head and Shoulder pattern which has a bearish implication as at the breach of neckline region of Rs 2300-Rs 2275(coinciding with the 23.6% retracement of the rally since Mar’22) a deeper drop towards Rs 1,800 (50% retracement) can be seen. Secondly, a bearish Wedge formation is also in place and prices has already plunged and initiated the necessary breakout against which the projected target of the stock comes around Rs 2,065 followed by Rs 1,835. Amid such pessimism, the level of Rs 2050- Rs 2065 will be the key support level to watch for as it coincides with the 100WMA which reinstates that the stock is presently at a make-or-break level i.e. sustaining above which can lead to an intermittent pullback towards Rs 2,650.”
