RELIANCE - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 3.6

📈 Technical Overview

Current Price ₹1,417 is slightly below DMA 50 (₹1,441) and above DMA 200 (₹1,374) — indicates short-term consolidation, but long-term strength.

RSI at 40.4: Approaching oversold territory — potential for rebound.

MACD at −18.2: Deeply negative — trend still weak, but nearing base.

Volume is solid and above weekly average — high liquidity, easier to enter and exit.

📊 Fundamental Strength

P/E of 25.6 vs Industry PE of 21.6: Slightly overvalued, but acceptable for a market leader.

EPS ₹60.2, with PAT growth of +35.6% QoQ: Shows earnings momentum.

ROCE (9.43%) & ROE (8.51%): Solid but not aggressive — stable performance.

PEG Ratio 4.38: Expensive relative to expected growth.

Dividend Yield of 0.35%: Low, but reliable.

Debt-to-equity 0.44: Healthy balance sheet for its size.

🧭 Institutional Sentiment

FII (+0.14%) and DII (+0.36%) holdings increased — modest institutional optimism.

🎯 Optimal Entry Price

₹1,375–₹1,390

Entry closer to 200 DMA and recent support zone.

Ideal if RSI ticks up toward 45+ and MACD starts flattening.

🚪 Exit Strategy (If Holding)

Target Zone: ₹1,500–₹1,530 — close to recent highs and resistance levels.

Stop-Loss: ₹1,345 — below DMA 200 and swing low to contain downside risk.

Summary: Reliance is a steady large-cap with decent fundamentals and improving earnings. Technicals are weak but approaching support levels, offering a swing setup if momentum turns. It's not a high-beta play, but it can deliver clean swings when broader market sentiment is positive. Want to dig into sector correlations or compare against other Nifty heavyweights for rotation plays? 🌀📊 Let’s build your edge.

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