Reliance Industries’ stock price rebounds after a slow week
As the NSE and BSE markets opened today, Sensex lifted by more than 400 points, while the Nifty Index regained back to 14,400, recovering from the previous day’s (Monday, 18 January) profit booking.
Among the Nifty leaders stood Reliance Industries (RIL) with a growth of 2% at Rs 2026.
This surge in the Reliance Industries stock price comes in relation to Reliance Retail Ltd announcing plans to integrate its e-commerce application JioMart into Whatsapp within half a year.
The partnership is expected to benefit both the companies as it will supposedly allow Whatsapp users to order products/services without having to exit the messaging app.
VK Vijayakumar, chief investment strategist, Geojit Financial Services stated – ” Large-caps like HDFC Bank and Reliance Industries have become strong. High delivery-based buying in these stocks indicate their improving prospects.”
“The major positive development for the markets today is the Treasury Secretary-elect Janet Yellen’s comment on the need for ‘big stimulus’. Further big stimulus along with huge liquidity created by the unprecedented monetary stimulus can keep markets buoyant; but there is a risk of bubble valuations with its vulnerability to sharp corrections, even crashes.”, VK Vijayakumar added.
The mentioned analysis comes as a result of the new US Treasury Secretary-elect Janet Yellen’s statement which is suggestive of developments in COVID-19 management and reopening of schools/institutions.
Vijayakumar’s comment on the current vulnerability of the market was also second-voiced by Proprietary Index Trader and Technical Analyst at Deen Dayal Investments, Manish Hathiramani. “Although we have opened with a gap up, I would be wary of going long immediately. The Nifty has resistance around the 14,550-14,600 levels. If we conquer that, we should be headed to 14,900. Until then there is every possibility to go down to levels closer to 14,100 and then even 14,000.”, he stated.
Ever since the COVID-19 pandemic has struck, the global market has been very uncertain due to several opposing speculations regarding the true track for which the market is headed. Experts agree that the market is very close to attaining pre-Covid period stability, but investors should wait out a little longer before they settle in for the long haul.