RIL shares are down 20% from record high, oversold on charts; here’s what analysts say

Shares of Reliance Industries Ltd (RIL) have fallen 20% from their record high. The market heavyweight, which hit a record high of Rs 1,608.95 on July 8, 2024 was trading at Rs 1,278 level in the current session. The stock of billionaire Mukesh Ambani-led conglomerate has delivered zero returns this year. In fact, the stock is down 1.30% on a year-to-date basis. The large cap stock has turned oversold on charts with its RSI falling below 30 at 28.4. 

In the current session, the stock was trading at Rs 1,281. In terms of moving averages, the stock has turned weak both in the short term and long term. RIL shares are trading lower than the 5 day, 20 day,  30 day, 50 day, 100 day and 200 day moving averages.

The stock has a beta of 1.2, indicating high volatility in a year. 

The company’s market cap slipped to Rs 17.30 lakh crore. Total 1.43 lakh shares of the firm changed hands amounting to a turnover of Rs 18.27 crore on BSE. 

Reliance Industries shares hit an all-time high of Rs 1608.95 on July 8, 2024 and fell to a 52 week low of Rs 1155.83 on November 13, 2023. 

Analysts are mostly bullish on the prospects of the RIL stock. 

Ameya Ranadive, CMT CFTe, Sr Technical Analyst, StoxBox said, “Reliance Industries Ltd is currently trading at Rs 1,280, following a significant correction of over 20% from its recent highs. This price level falls within a key support zone of Rs 1,280-1,260, an area that has historically shown strong accumulation and stability over the years. Technical indicators suggest potential for a rebound. The Relative Strength Index (RSI) has entered oversold territory, currently reading at 29, reflecting possible upside momentum. With Nifty down 7% during the same period, Reliance appears to offer a favourable risk-reward setup at its current valuation. For those considering a position, a buy can be initiated at Rs 1,280, with a stop loss set at Rs 1,240. Target levels to watch are Rs 1,365 and Rs 1,390, positioning Reliance as a potential opportunity within the current market landscape.”

Jigar S Patel, senior manager of equity research at Anand Rathi said, “Support will be Rs 1250 and resistance at Rs 1,300. A decisive move above the Rs 1300 level may trigger a further upside of Rs 1375. The expected trading range will be between Rs 1250 and Rs 1375 for the short-term.”

Gaurav Bissa, VP, InCred Equities said, “After witnessing a consolidation breakout last year, Reliance has witnessed about 20 percent fall from top. It has broken multiple supports on the daily charts which resulted in the increased pressure in the last few weeks. However, the price is now approaching its 200ema on the weekly charts which can lend a much needed support. Currently, this level is placed around Rs 1180 and any declines towards this level can be used to add Reliance for long term targets of Rs 1600 and above.”