RIL shares rose 21% from 52-week low this year; can the stock breach record high?

Shares of Reliance Industries Ltd (RIL) have rebounded 21% from their 52-week low in a span of less than four months. The large cap stock, which fell to a 52-week low of Rs 2,180 on March 20, 2023 closed on a flat note at Rs 2645.35 on July 7 this year, delivering 20.87% returns during the period. The benchmark Sensex has risen 13.27% since March 20.

A majority of gains in the stock of the Mukesh Ambani-led conglomerate have come in the last three months. The stock has climbed 12.70% in three months, approaching the record high of Rs 2,754.70 recorded on December 1, 2022. Interestingly, the Reliance Industries stock has surged 10.38% in a year.

In the last session, RIL stock ended 0.11% lower at Rs 2635.45 against the previous close of Rs 2638.35 on BSE. The stock of Reliance Industries has gained 3.42% this year and risen 44.49% in three years. Total 5.77 lakh shares of the firm changed hands amounting to a high turnover of Rs 152.43 crore, among the second highest on BSE on Friday. Market cap of the conglomerate stood at Rs 17.83 lakh crore.

In terms of technicals, the relative strength index (RSI) of RIL stock stands at 66.9, signaling it's trading neither in the oversold nor in the overbought zone. The stock has a beta of 1.2, indicating high volatility in a year. RIL shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The stock is trading at a seven-month high, boosted by a recovery rally in the last three months. RIL stock closed at Rs 2,649 on December 8 compared to the current level of Rs 2635.45 on BSE.

Here's a look at what analysts said on the outlook of the RIL stock.

Gaurav Bissa, VP, InCred Equities said, "Reliance Industries has been on the strongest largecap names in the recent rally in the market. The stock has been consistently making higher highs and higher lows on daily charts implying it is in a strong uptrend. The stock is trading near 15-month descending channel pattern and a weekly close above Rs 2665 will trigger a fresh breakout for an upside till Rs 2750 levels., So far, the RSI has been witnessing minor divergences and a sustained move above 72 will likely push the stock price higher in a short period of time."

Osho Krishan, Sr. Analyst - Technical & Derivative Research, Angel One said, "Reliance has seen a decent uprun of over 12 percent in the current financial year and has maintained its cycle of higher highs – higher lows on the daily time frame. The uptrend is vindicated by the fact that it is placed well above all its major moving averages. The stock is now close to its overhead resistance zone of Rs 2670-2700. While on the downside, in case of any blip, the stock is likely to find support around Rs 2600-2570 levels, followed by the sacrosanct support of Rs 2500."

Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher said, “The stock after two days of slight sluggishness has once again indicated a positive bullish candle on the daily chart with improved bias and breaching above the peak zone of Rs 2625 levels anticipating for further rise with indicators showing strength and has a near-term target of Rs 2680 level and further improvement in the trend can carry on the momentum for further targets of Rs 2750-2780 levels. The near-term support would be maintained near Rs 2570 zone with the overall trend maintained strong.”

Abhijeet from Tips2trades said, "Reliance Industries looks bullish on the daily charts with next resistance at Rs 2741. A daily close below the support of Rs 2555 only could lead to a target of Rs 2440 in the near term."

Brokerage Systematix Institutional Research has a buy call on the RIL stock with a target price of Rs 2766.

Mukesh Ambani-led Reliance Industries reported a 19.10 per cent year-on-year (YoY) rise in net profit at Rs 19,299 crore for the March quarter compared with Rs 16,203 crore profit in the corresponding quarter last year. The Mukesh Ambani-led conglomerate said its revenue from operations for the quarter rose 2.12 per cent YoY to Rs 2,16,376 crore compared with Rs 2,11,887 crore in the same quarter last year.

Also read: Reliance Retail opts for reduction of share capital at Rs 1,362 per share

Also read: Anil Agarwal-led Hindustan Zinc declares interim dividend of Rs 7 per share, Vedanta to get Rs 1,920 cr