Reliance Infra shares up 6% today; here's what you should do

Shares of Reliance Infrastructure Ltd jumped 6.36 per cent to trade at Rs 177.25 in Tuesday's deals. The stock was last seen trading 3.06 per cent higher at Rs 171.75. At this price, it has slipped 18.47 per cent on a year-to-date (YTD) basis.

Analysts largely gave 'bearish' views on the counter. Support could be seen at Rs 165, followed by Rs 154, Rs 150 and Rs 145 levels. Immediate resistance may be found at the Rs 178-182 zone. One of the analysts suggested that traders should consider "selling on rallies".

Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher, said, "Reliance Infra is in corrective phase. And, Rs 150 should act as good support level."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 165 and resistance at Rs 178. A decisive close above Rs 178 level may trigger a further upside till Rs 200. The expected trading range will be between Rs 155 and Rs 200 for a month."

AR Ramachandran from Tips2trades said, "Reliance Infrastructure looks bearish but also oversold on daily charts with strong resistance at Rs 182. A daily close above this resistance could lead the stock to an upside target of Rs 228 in the near term. Next support will be at Rs 154."

Rupak De, Senior Technical Analyst at LKP Securities, said, "The trend in Reliance Infra appears weak. Weakness might persist and selling on rallies might be suitable for the stock. On the lower end, it might decline towards Rs 145-150."

The counter was trading lower than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The stock's 14-day relative strength index (RSI) came at 54.31. 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 1.86 against a price-to-book (P/B) value of 0.90. Earnings per share (EPS) stood at (-)91.98 with a return on equity of (-)48.32.

The Anil Dhirubhai Ambani group firm is engaged in the business of providing engineering and construction services for power, roads, metro rail, and other infrastructure sectors. As of March 2024, promoters held a 16.50 per cent stake in the company.