RELIANCE - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.4
| Stock Code | RELIANCE | Market Cap | 17,97,458 Cr. | Current Price | 1,328 ₹ | High / Low | 1,612 ₹ |
| Stock P/E | 42.0 | Book Value | 418 ₹ | Dividend Yield | 0.45 % | ROCE | 7.78 % |
| ROE | 7.71 % | Face Value | 10.0 ₹ | DMA 50 | 1,344 ₹ | DMA 200 | 1,395 ₹ |
| Chg in FII Hold | -0.42 % | Chg in DII Hold | 0.36 % | PAT Qtr | 7,422 Cr. | PAT Prev Qtr | 9,396 Cr. |
| RSI | 51.2 | MACD | -12.9 | Volume | 1,72,26,921 | Avg Vol 1Wk | 1,65,00,304 |
| Low price | 1,253 ₹ | High price | 1,612 ₹ | PEG Ratio | -23.4 | Debt to equity | 0.41 |
| 52w Index | 20.9 % | Qtr Profit Var | -33.8 % | EPS | 32.4 ₹ | Industry PE | 5.37 |
📊 RELIANCE shows weak efficiency metrics with ROCE (7.78%) and ROE (7.71%), alongside a high P/E (42.0 vs industry 5.37). Quarterly PAT declined sharply (7,422 Cr vs 9,396 Cr, -33.8%), raising earnings concerns. Technicals are neutral to bearish with RSI at 51.2 and MACD negative (-12.9). The stock trades below both 50 DMA (1,344 ₹) and 200 DMA (1,395 ₹), indicating weak momentum. Valuation remains stretched, though strong market capitalization and diversified operations provide stability.
💡 Optimal Entry Price: Around 1,270–1,290 ₹ (near support zone).
🚪 Exit Strategy: If already holding, consider booking profits near 1,370–1,390 ₹ (resistance zone) or trail stop-loss at 1,250 ₹ to manage downside risk.
🌟 Positive
- 📈 Strong market capitalization (₹17,97,458 Cr.) ensures liquidity.
- 📊 Debt-to-equity ratio (0.41) indicates manageable leverage.
- 📉 DII holdings increased (+0.36%), showing domestic institutional support.
- 📊 Diversified operations across energy, telecom, and retail.
⚠️ Limitation
- 📌 High P/E (42.0) compared to industry average (5.37).
- 📌 Weak ROCE (7.78%) and ROE (7.71%).
- 📌 EPS of 32.4 ₹ is modest relative to valuation.
- 📌 RSI and MACD indicate weak momentum.
- 📌 FII holdings decreased (-0.42%), showing reduced foreign confidence.
📰 Company Negative News
- ⚠️ Quarterly PAT declined (-33.8%).
- ⚠️ Trading below both 50 DMA and 200 DMA.
📰 Company Positive News
- ✅ Domestic institutions increasing stake signals confidence.
- ✅ Strong liquidity due to large market capitalization.
- ✅ Diversified business model provides long-term resilience.
🏭 Industry
- Industry P/E at 5.37 highlights RELIANCE’s premium valuation.
- Energy and telecom sectors remain critical growth drivers in India.
✅ Conclusion
RELIANCE is fundamentally stable with strong liquidity and diversified operations, but high valuation and profit decline limit swing trade potential. Entry near 1,270–1,290 ₹ offers a cautious setup, with exit around 1,370–1,390 ₹. Traders should maintain strict stop-loss discipline below 1,250 ₹ due to weak momentum.
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