RIL shares rise for third session, see high turnover; here's the stock outlook

Shares of billionaire Mukesh Ambani-led Reliance Industries Ltd (RIL) rose for the third straight session today. The stock gained nearly a percent intraday to Rs 2530 against the previous close of Rs 2506.55 on BSE. The stock of Reliance Industries has slipped 1.11% this year and lost 2.14% in the last one year. Total 1.93 lakh shares of the firm changed hands amounting to a turnover of Rs 48.72 crore, among the highest on BSE today. Market cap of the conglomerate stood at Rs 17.04 lakh crore in early trade today.  

In terms of technicals, the relative strength index (RSI) of RIL stock stands at 66.4, signaling it's trading neither in the oversold nor in the overbought zone. The stock has a beta of 1.1, indicating high volatility in a year. RIL shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

Here's a look at what analysts said on the outlook of the RIL stock.

Osho Krishan, Senior Analyst - Technical & Derivative Research at Angel One, said, "In the last couple of trading sessions, the counter has seen traction from the strong support of the Rs 2,400-odd zone. Sustainable buying in the follow-up sessions could boost the momentum in the near period. As far as levels are concerned, the Rs 2,440-2,420 zone is likely to act as immediate support. If it holds Rs 2,500, then the counter may trigger the next leg of rally in the counter in a comparable period."

Deven Mehata, Equity Research Analyst at Choice Broking said, "The stock has a strong support at Rs 2,410. And, a small resistance near Rs 2,510 levels could be witnessed. Once the stock maintains a higher level than Rs 2,510, it may advance upward and approach the Rs 2,600 level. The RSI indicator is comfortably trading at 65 levels which indicates that the stock has the potential to move upwards. On weekly charts, it has managed to cross the prior week's open levels which makes the stock form a 'Bullish engulfing pattern', indicating strength for further up-move. We recommend buying Reliance at current levels and it can be added on dips at Rs 2,450 for a medium-term outlook, while keeping a stop loss placed at Rs 2,410 for targets of Rs 2,610-2,650."

Pravesh Gour, Senior Technical Analyst at Swastika Investmart, said, "RIL has witnessed a breakout of an inverse head and shoulders formation on the longer timeframe with strong volume. It suggests a potential bullish reversal in the counter. The strong volume indicates increased buying interest and confirms the significance of the breakout. The stock has a psychological resistance level of Rs 2,550. If the share price manages to break above the Rs 2,550 resistance level with conviction, then an increased bullish momentum could be seen. In the near term, the stock could lead to a target price of Rs 2,600 or even higher. On the downside, if there is a correction, the major support level is identified at Rs 2,415."

Reliance Industries reported a 19.10 per cent year-on-year (YoY) rise in net profit at Rs 19,299 crore for the March quarter compared with Rs 16,203 crore profit in the corresponding quarter last year. The Mukesh Ambani-led conglomerate said its revenue from operations for the quarter rose 2.12 per cent YoY to Rs 2,16,376 crore compared with Rs 2,11,887 crore in the same quarter last year.