Shares of Reliance Industries Ltd (RIL) are stuck in bear grip in 2024. In terms of returns, the stock of billionaire industrialist Mukesh Ambani-led conglomerate slipped 4.47% in this year. In shorter time spans, the stock has delivered negative returns. RIL stock clocked returns of just 3.62% and 4.53% in a year and two years, respectively, leaving investors guessing about the fate of their money in the RIL stock. I
n yet another not so positive development, the stock is trading near its 52 week low of Rs 1185.63 reached on November 30, 2023. In the current session, the market heavyweight, which hit a record high of Rs 1,608.95 on July 8, 2024 was trading at Rs 1,240 on BSE.
The large cap stock has turned oversold on charts with its RSI falling below 30 at 24.8. This implies that there are more sellers than buyers for the stock on bourses.
In terms of moving averages, the stock has turned weak both in the short term and long term. RIL shares are trading lower than the 5 day, 20 day, 30 day, 50 day, 100 day and 200 day moving averages.
The stock has a beta of 1.2, indicating high volatility in a year.
The company's market cap slipped to Rs 16.79 lakh crore on BSE today. Total 5.22 lakh shares of the firm changed hands amounting to a turnover of Rs 64.41 crore on BSE.
However, there is a silver lining with respect to the RIL stock. Brokerages and analysts are positive on the prospects of the stock amid its ongoing underperformance.
Morgan Stanley has maintained an ‘Overweight’ rating on RIL with a price target of Rs 1,662 per share.
The brokerage said Reliance's refining margins were beginning to recover after two challenging quarters. It also noted an increase in permanent refinery capacity shutdowns.
Another brokerage JPMorgan has remaind overweight on RIL with a revised target of Rs 1,468. It has cited improved refining margins and potential from its solar panel venture, though retail growth concerns persist.
The report said one of the key factors behind RIL's recent underperformance—weak refining margins—has reversed, offering a positive outlook.
However, the other factor, sluggish retail top-line growth, remains challenging to predict, though market expectations have moderated.
Ameya Ranadive, CMT CFTe, Sr Technical Analyst, StoxBox said, "Reliance appears to offer a favourable risk-reward setup at its current valuation. For those considering a position, a buy can be initiated at Rs 1,280, with a stop loss set at Rs 1,240. Target levels to watch are Rs 1,365 and Rs 1,390, positioning Reliance as a potential opportunity within the current market landscape."
Jigar S Patel, senior manager of equity research at Anand Rathi expects the RIL stock to trade in a range of Rs 1250 and Rs 1375 in the short-term.
"Support will be at Rs 1250 and resistance at Rs 1,300. A decisive move above the Rs 1300 level may trigger a further upside of Rs 1375," said Patel.
Global brokerage CLSA has an 'Outperform' rating on RIL. It has assigned a target of Rs 1,650 to the stock.
According to CLSA, the stock market is ignoring the new energy business of Reliance Industries Ltd (RIL) worth $40 billion and said the RIL stock is priced attractively to play triggers in 2025 such as the start of new energy capacities, the return of promising growth in retail, a ramp-up in AirFiber subscribers and a potential Reliance Jio Infocomm initial public offer (IPO).
The foreign brokerage is bullish on Reliance's fully integrated 20GW solar Gigafactory, set for launch in 3-4 months. The brokerage believes the RIL stock can rise 70 per cent in the blue-sky scenario. In its base case, it anticipates 30 per cent upside for the oil-to-telecom major.