RELIANCE - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 4.2

📈 Positive

• 📊 Strong technical setup: Price is above both DMA 50 (₹1,422) and DMA 200 (₹1,389), confirming bullish momentum.
• 📈 RSI at 62.4 and MACD at 26.9 indicate continued upward trend with room before overbought zone.
• 📈 EPS of ₹34.7 and consistent PAT (₹9,129 Cr.) reflect earnings stability.
• 📈 ROCE of 7.57% and ROE of 6.61% show moderate capital efficiency for a diversified conglomerate.
• 📈 DII holding increased by 0.53%, signaling growing domestic institutional confidence.
• 📈 Volume (1.02 Cr.) matches 1-week average, indicating sustained participation.

⚠️ Limitation

• 📉 P/E of 51.0 vs industry P/E of 20.3 signals premium valuation.
• 📉 PEG ratio of -13.8 suggests negative growth outlook or earnings volatility.
• 📉 Dividend yield of 0.37% offers minimal passive income.
• 📉 FII holding declined by 0.56%, showing cautious foreign sentiment.
• 📉 PAT declined QoQ from ₹10,036 Cr. to ₹9,129 Cr., a 9% drop.

🚫 Company Negative News

• 📉 Analysts have flagged concerns over high valuation and slower growth in retail and telecom segments.

✅ Company Positive News

• 🛢️ RELIANCE continues to benefit from its diversified portfolio across energy, telecom, and retail.
• 📈 Strategic investments and Jio expansion support long-term growth visibility.

🏦 Industry

• 🏭 Operates across multiple sectors including energy, telecom, and retail, each with distinct cyclical and growth dynamics.
• 📊 Industry P/E of 20.3 reflects conservative valuation norms for conglomerates.

🧾 Conclusion

• 📈 RELIANCE is technically strong and fundamentally stable, making it a good candidate for swing trading despite valuation caution.
• 📍 Optimal entry: ₹1,455–₹1,465 (near DMA 50 and support zone).
• 🚪 Exit if held: ₹1,525–₹1,540 (near recent high) unless momentum strengthens further.
• ⚠️ Suitable for swing trading with moderate risk and close monitoring of RSI and sector performance.

I can also help compare RELIANCE’s swing setup with peers like Adani Enterprises or Tata Group stocks to identify stronger short-term opportunities.