On Friday, December 13, Reliance Industries Limited (RIL) witnessed a significant block deal involving 16.7 lakh shares, indicating robust trading activity amid the ongoing stock weakness. Shares of the Nifty 50 heavyweight have declined for the sixth consecutive session, marking a challenging period for the company in 2024.
As of 11:39 am the shares were trading 1.18% lower at ₹1,248.00
Weekly Performance
- Reliance Industries shares are down 5.4% this week, which is set to be the worst weekly performance since early October when the stock declined nearly 10%.
- The stock had recently made a 52-week low of ₹1,203, rebounded to around ₹1,300, but has faced renewed selling pressure.
Technical Analysis
- The stock is nearing oversold levels on the charts, with the Relative Strength Index (RSI) at 35. An RSI below 30 typically signals oversold conditions, potentially triggering a rebound.
- Reliance shares have corrected over 20% from their 52-week high of ₹1,600, highlighting significant downward pressure.
Brokerage Recommendations
Despite the downturn, leading brokerages view the correction as a buying opportunity, citing improved risk-reward scenarios:
- JPMorgan: Maintains an “overweight” rating with a price target of ₹1,468. The brokerage anticipates a 14% EBITDA growth by FY26 and sees little risk of further EPS cuts. Potential commodity recovery and tariff hikes are seen as positive catalysts.
- Citi: Upgraded Reliance to “buy” on November 25, raising its target price to ₹1,530. Citi expects retail softness to persist but highlighted Jio’s positioning to benefit from tariff hikes, improved data pricing, and 5G monetization.
Analyst Ratings
Out of 38 analysts covering Reliance Industries:
- 32 recommend ‘Buy’
- 3 suggest ‘Hold’
- 3 recommend ‘Sell’
