RELIANCE - Swing Trade Analysis with AI Signals

Last Updated Time : 19 Sept 25, 2:15 pm

Swing Trade Rating: 4.1

📊 Swing Trade Analysis: Reliance Industries Ltd (RELIANCE)

Reliance Industries offers a technically strong and fundamentally stable swing trade setup. While valuation is stretched and profitability metrics are modest, the stock’s momentum, institutional interest, and liquidity make it a compelling short-term opportunity.

✅ Strengths

Technical Momentum

RSI: 58.6 → Bullish zone, with room to rise.

MACD: 0.51 → Positive crossover, indicating upward momentum.

Price above DMA50 (₹1,402) and DMA200 (₹1,378) → Confirmed uptrend.

Volume Strength

Current volume (1.00 Cr.) > 1-week average → Strong market interest.

Institutional Confidence

FII Holding ↑ 0.14%, DII Holding ↑ 0.36% → Positive sentiment.

Earnings Stability

PAT Qtr: ₹10,036 Cr. vs ₹11,217 Cr. → Slight decline, but still robust.

Qtr Profit Var: +31.9% → Solid year-over-year growth.

Balance Sheet

Debt-to-Equity: 0.37 → Moderate leverage.

EPS: ₹33.7 → Strong earnings base.

⚠️ Weaknesses

Valuation Concerns

P/E: 50.8 vs Industry PE: 17.4 → Highly overvalued.

PEG Ratio: -13.8 → Indicates poor growth relative to valuation.

Profitability

ROCE: 7.57% and ROE: 6.61% → Moderate capital efficiency.

Low Dividend Yield: 0.39% → Minimal passive income.

🎯 Optimal Entry Price

Buy Zone: ₹1,390–₹1,405

Near DMA50 and recent support, offering a safer entry.

🚪 Exit Strategy (If Holding)

Target Exit: ₹1,500–₹1,520

Near recent high and psychological resistance.

Stop Loss: ₹1,360

Below DMA200 to manage downside risk.

This setup suits momentum-driven swing traders who can monitor RSI and MACD for continuation signals and exit on strength. Let me know if you'd like help tracking this setup or setting alerts.

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