Reliance Infrastructure shares jump 11% today; here's what tech charts indicate

Shares of Reliance Infrastructure Ltd rose sharply in Wednesday's trade amid heavy volumes. The stock jumped 10.75 per cent to hit a day high of Rs 157.15 over its previous close of Rs 141.90. Around 34.20 lakh shares changed hands today on BSE, which was way more than the two-week average volume of 4.94 lakh shares. Turnover on the counter stood at Rs 49.72 crore, commanding a market capitalisation (m-cap) of Rs 5,398.22 crore.

At today's high price of Rs 157.15, the stock was down 21.95 per cent from its 52-week high of Rs 201.35, hit on September 2, 2022. That said, it has gained 55.98 per cent from its one-year low price of Rs 100.75, a level seen on July 19 last year.

On technical setup, support on the counter could be seen at Rs 147, followed by Rs 143 mark. The stock faces resistance around Rs 160 level.

Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher, said, "The stock has witnessed a decent spurt in the last two sessions from Rs 134 levels to touch the peak zone of Rs 157. It faces resistance near Rs 158 level. A decisive breach above Rs 158 may trigger a further upward move for a next expected target of Rs 168 in the coming days. The near-term support is visible near Rs 147 levels from current rate."

AR Ramachandran from Tips2trades said, "Reliance Infrastructure is bullish on the daily charts with strong resistance at Rs 158. A daily close above this resistance could lead to targets of Rs 175 in the near term. Support will be at Rs 143."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "At current juncture, it is trading near its resistance zone of Rs 160 which is a matter of concern. On the flip side, fresh longs will only get triggered once the daily close is above 160."

Milan Sharma, Founder at 35North Ventures, said, "The risk reward ratio is looking favourable and long-term investors can hold the stock. The assets held by the companies are extremely valuable and its cash flow is strong and stable. Investors may buy it for a target of Rs 220 over the next 12 months."

VLA Ambala, Research Analyst at Stock Market Today, said, "This could be a good time to enter the stock with target expectations between Rs 180 and Rs 220. For these targets, one must keep stop loss placed at Rs 132."

The counter's 14-day relative strength index (RSI) came at 54.20. 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 1.56 against a price-to-book (P/B) value of 0.50.

Reliance Infra has a one-year beta of 0.78, indicating low volatility.

Meanwhile, Indian equity benchmarks scaled their fresh all-time highs today. The 30-share BSE Sensex pack surged more than 300 points to touch its all-time high of 67,117, while the broader NSE Nifty moved over 100 points up to scale a fresh record peak of 19,842.

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