Reliance Industries (RIL) share price continued its record-breaking rally for the second consecutive day on Wednesday, hitting a fresh all-time high of Rs 2,724.95 on the BSE. The stock closed at Rs 2,718.40, up 2.58%, adding Rs 93,121.64 crore to its market capitalization, which now stands at a staggering Rs 18,39,183.64 crore.
The strong performance of RIL shares has been driven by several factors, including the company’s consistent financial performance, quality management, and strong growth prospects. Reliance has been trading in a broad channel for the last few months with an upward bias, and the recent breakout on the higher side with high volume suggests further upside potential.
Aditya Agarwal, Head of Derivatives & Technicals at Sanctum Wealth, believes that the overall structure for the stock from a short to medium-term perspective looks positive. He recommends initiating fresh long positions at current levels or on any correction towards Rs 2,640-2,600, with targets of Rs 2,950-3,040. However, he cautions that Rs 2,480 will act as a strong support zone, and short-term traders should exit long positions if the stock falls below this level.
Nikunj Dalmia, Editor-in-Chief at ET Now, is also bullish on RIL’s prospects for 2024. He believes that the company has a strong case to outperform the Nifty index, as it needs institutional appetite to move the Nifty. Dalmia notes that typically, at the start of a new capex cycle, Reliance will underperform, but when the capex cycle starts getting over, Reliance will start catching up. He points out that this has been the 15-20 year history of Reliance.
The rally in RIL shares has also helped the equity benchmark indices settle higher. In the last 90 days, the stock has delivered 15.92% returns, and in the last 3 years, it has multiplied investors’ wealth by 55.25%.
On Wednesday, the Indian equities markets kept rising, with the Nifty steadily moving closer to the 24,000 level and setting new records for the second day in a row. The optimism surrounding the Union Budget, increasing FII inflows, and robust domestic economic data have contributed to the positive movement in the market.
However, Nagaraj Shetti of HDFC Securities notes that the current upside momentum might face resistance around the 24,000-24,100 levels, and a period of consolidation or minor weakness could emerge from these highs. The immediate support is at 23,650 levels.
Major US market indices ended the day on Wednesday with slight gains following a tumultuous trading session as investors remained cautious ahead of a keenly watched presidential debate. inflation report by the Federal Reserve. The Dow gained 0.04%, the S&P rose 0.16%, and the Nasdaq increased by 0.49%.
A surprising increase in U.S. stocks caused oil prices to plummet in early Asian trade on Thursday, sparking worries about weak demand from the country that consumes the most oil.
But the declines were constrained by concerns that the Gaza war would spread and impair supply to the Middle East. The yen struggled to stay below 160 per dollar, close to a 38-year low, and traders were on the lookout for any indications that Japanese authorities may step in to strengthen the currency.
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Reliance Industries’ share price has reached a lifetime high for the second day in a row, driven by the company’s strong fundamentals and growth prospects. The rally in RIL shares has also helped the Indian equity markets continue their upward trend, with the Nifty approaching the 24,000 mark. However, investors should be cautious about potential resistance levels and consolidation in the near future.
