On April 7, the renowned blue-chip stock, Reliance Industries Limited (RIL), experienced significant selling pressure, mirroring a global market downturn. The company, under the leadership of Mukesh Ambani, witnessed its share price plummet by over 7%, reaching a new 52-week low of ₹1,115.55 on the Bombay Stock Exchange (BSE). Opening at ₹1,125, down from its previous close of ₹1,204.70, RIL’s share price hit a low of ₹1,115.55 before slightly recovering to ₹1,146.85 around 10:30 AM.

Broader Market Trends Impacting Reliance

The downturn in Reliance’s stock coincided with a significant crash in the overall stock market. The Sensex, a key market benchmark, fell nearly 4,000 points, while the BSE Midcap and Smallcap indices plunged by as much as 10% in early trading.

• Key Market Data:
  • Reliance’s stock down over 10% in April.
  • Reached a 52-week high of ₹1,608.95 on July 8 last year.
  • Current decline marks a 31% drop from its peak.

Long-Term Outlook for Reliance Shares

Despite the recent turbulence, global brokerage firm Goldman Sachs remains optimistic about Reliance’s prospects. The firm has maintained a ‘buy’ rating on the stock, with a target price set at ₹1,640 per share. They suggest that, although the company’s net asset value (NAV) discount has improved slightly, it still remains significant compared to historical benchmarks. This outlook reflects concerns about subdued EBITDA growth projected for FY25, along with ongoing earnings adjustments related to sluggish retail expansion and low refining margins observed over the past three quarters.

Technical Analysis: What the Charts Reveal

Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, offered insights into Reliance’s technical positioning. He noted that the stock has breached the critical support level of ₹1,200 and is currently trading around ₹1,145.

• Support Levels:

  • ₹1,100
  • ₹1,050
• Resistance Levels:
  • ₹1,200
  • ₹1,300

Patel concluded, “Given the current chart dynamics, we expect a consolidation phase within the ₹1,100–₹1,200 range before a significant directional move. Long-term investors might find it favorable to accumulate shares near these support levels, while traders should approach with caution due to heightened volatility.”

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