Explained: RIL shares on a roll! What should investors do?

Shares of Reliance Industries Limited rose 4 per cent to hit an all-time high of Rs 2479.85 on BSE after the company's subsidiary acquired a stake in Strand Life Sciences.
 
"Reliance Strategic Business Ventures Limited, a wholly-owned subsidiary of Reliance Industries Limited has acquired 2,28,42,654 equity shares of Rs 10 each of Strand Life Sciences Private Limited for a cash consideration of Rs 393 crore," RIL said.
 
"A further investment of up to Rs 160 crore is expected to be completed by March 2023. The total investment will translate into 80.3% of equity share capital in Strand on a fully diluted basis," it added.
 
The stock opened 1 per cent higher at Rs 2,414.00 against the previous close of Rs 2,388.25. The stock has been gaining for the last 4 days and has risen 8.51% returns during the same period.
 
With a market capitalisation of Rs 15,46,824.12 crore, the share stands higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The stock has surged 24 per cent since the beginning of this year and has risen 18 per cent in the last 12 months.
 
"A positive sentiment prevailing in global markets along with expectation off sustained low-interest rates globally has propelled Nifty and consequently Reliance to all-time highs. Technically, investors are advised to keep booking profits at current levels and look for a re-entry near 2205-2145 levels in the coming weeks," said Mr. AR Ramachandran, Co-founder & Trainer, Tips2Trades.
 
According to MarketsMojo, the technical trend has improved from Mildly Bullish on August 30, 2021, and the stock is technically in a Bullish range now. Multiple factors for the stock are bullish like MACD, Bollinger Band, KST and DOW.
 
Also, the stock is trading at a discount compared to its average historical valuations and with an ROE of 6.2, it has a Fair valuation with a 2.2 Price to Book Value. The company has high institutional holdings at 38.38% as well.
 
Recently, India's largest retailer Reliance Retail Ventures said it has taken sole control of Just Dial Limited in accordance with the SEBI Regulations, with effect from September 1, 2021. The Just Dial deal will allow Reliance access to the 25-year-old listings company's merchant database.
 
Reliance Retail, in a statement to the stock exchanges today, said on July 20, 2021, it had acquired 1.31 crore equity shares of Rs 10 each of Just Dial at a price of Rs 1,020 per equity share from Just Dial founder and CEO VSS Mani via the block window facility. The acquisition represents 15.63 per cent of the post-preferential issue paid-up equity share capital of Just Dial.
 
Reliance Retail Ventures, a subsidiary of Reliance Industries Limited and holding company of all the retail companies under the RIL Group, had reported a consolidated turnover of Rs 1,57,629 crore and net profit of Rs 5,481 crore in FY21.