Shares of two index heavyweight stocks have slipped up to 7 per cent so far this year, in sync with overall weakness in Indian equity benchmarks. Shares of Reliance Industries Ltd (RIL) have lost 6.50 per cent on a year-to-date (YTD) basis, while Infosys Ltd has slipped 1.10 per cent compared to a 2.67 per cent and 1.54 per cent decline in NSE and BSE, respectively. On the earnings front, Reliance reported a 15 per cent year-on-year (YoY) fall in consolidated net profit for the quarter that ended December 2022 to Rs 15,792 crore. On the other hand, IT major Infy posted a 13.4 per cent YoY increase in net profit, at Rs 6,586 crore, for the December quarter.
Both the scrips settled on a higher note in the previous session (Monday) with RIL up 0.95 per cent and Infosys rising 1.88 per cent.
Here’s what a brokerage & analysts said on these two counters:
RIL
Kotak Institutional Equities has assigned a ‘Buy’ call and pegged the RIL counter at a fair value of Rs 3,000 over the next 12 months, suggesting a potential upside of 24.60 per cent from its Monday’s closing of Rs 2,407.80.
Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, said, “Reliance has sacrosanct support at Rs 2,300 level. Historically, the mentioned support has proved its mettle, and the same could be observed from the current trend also. As far as levels are concerned, Rs 2,350-2380 is likely to cushion some short-term blips, while Rs 2,300 is expected to act as a sheet anchor. On the higher end, the immediate swing high of Rs 2,463 is likely to be seen as an immediate hurdle, surpassing which strong traction could be seen in the comparable period.”
Ravi Singh, Vice-President and Head of Research at Share India, said, “Reliance Industries is looking strong on daily and weekly chart pattern with most of the momentum indicators in the buy zone. The long and short-term moving averages are in favour of an upward move in the near term. The stock may touch the levels of Rs 2,500 from a medium-term perspective.”
Ravi Singhal, CEO of GCL Securities, said, “Low crude oil prices will affect Reliance’s oil refinery business as well as petrochemical business on the demand side. The revival of Vodafone is also impacting its dual monopoly in telecom. So, the counter may decline up to Rs 2,100 levels in the coming days. But the said level is good to invest.”
Infy
For Infosys, Kotak has also given a ‘Buy’ rating, while pegging the IT counter at a value of Rs 1,775, suggesting a potential upside of 17.74 per cent from its yesterday’s close of Rs 1,507.55.
Angel One’s Krishan, said, “Infosys has corrected in the last couple of trading weeks and has plunged below all its major moving averages on the daily charts. However, in the previous two trading sessions, the counter has gained buying traction and made a modest recovery. From a technical point of view, the counter has a sturdy hurdle placed around Rs 1,540-1,545 levels, which coincides with the 200-SMA (Simple Moving Average). While on the downside, the immediate support is placed around Rs 1,490, followed by the sacrosanct support of Rs 1,467 level. Hence, until we see a decisive breakthrough on either side, the counter is expected to hover within the mentioned range.”
Share India’s Singh said, “Infosys has witnessed lower levels buying and short coverings taking cues from rupee weakness and recovery in benchmark indices. However, the technical formation in the stock and the momentum oscillators are suggesting a range-bound movement in the coming weeks. Infosys stock may touch the levels of Rs 1,680 in the near term.
GCL’s Singhal said, “High-interest rate scenario worldwide is affecting Infosys’ growth scenario. So, buying on dips is advisable near the Rs 1,300 level.”
Meanwhile, Indian equity benchmarks would be closed on Tuesday due to ‘Holi’.
Also Read | Missed opportunity? Adani group shares rally up to 95% from their 52-week low levels
Also Read | NMDC, AB Capital, Raymond, CIL, Carysil, Siemens, Praj Industries: 7 stocks see brokerage initiations