Shares of Reliance Infrastructure Ltd saw a sharp uptick in Monday's trading session. The stock surge 14.55 per cent to hit a high of Rs 192.15. It was last seen trading 9.15 per cent higher at Rs 183.10. At this price, the scrip has declined 13.08 per cent on a year-to-date (YTD) basis.
Reliance Velocity Ltd, a subsidiary of Reliance Infra, has recently incorporated Reliance EV Pvt Ltd as a wholly-owned subsidiary. The Certificate of incorporation has been received from the Ministry of Corporate Affairs on June 8, 2024, it stated.
On technical setup, support on the counter could be seen at the Rs 170-160 range. And, a decisive breach above Rs 200 is required for further upside.
Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "The stock was in a corrective phase. During the last couple of sessions, it has witnessed decent traction. Rs 200 level would be crucial to watch as a decisive breach would only trigger a trend reversal. On the lower end, Rs 170 should provide a cushion, while sacrosanct support lies around Rs 160-155."
Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, "Investors can consider booking profits at current levels and buy again at Rs 160 levels for a target of Rs 190. Keep stop loss placed at Rs 145."
Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 170 and resistance at Rs 195. A decisive close above Rs 195 level may trigger a further upside till Rs 226. The expected trading range will be between Rs 160 and Rs 226 for a month."
The counter was trading higher than the 5-day, 10-, 20-day and 30-day simple moving averages (SMAs) but lower than the 50-day, 100-, 150-day and 200-day SMAs. The counter's 14-day relative strength index (RSI) came at 49.17. A level below 30 is defined as oversold while a value above 70 is considered overbought.
The company's stock has a negative price-to-equity (P/E) ratio of 3.44 against a price-to-book (P/B) value of 1.05. Earnings per share (EPS) stood at (-)48.73 with a return on equity of (-)30.60.
Reliance Infra shares had witnessed a correction a couple of months earlier after the Supreme Court of India overturned its prior ruling that compelled the Delhi Metro Rail Corporation (DMRC) to pay an arbitration award of around Rs 8,000 crore to the firm's subsidiary, Delhi Airport Metro Express Pvt Ltd (DAMEPL).
Reliance Infra has issued a clarification to BSE, mentioning that the order "does not impose any liability on the company."
As of March 2024, promoters held a 16.50 per cent stake in the company.