RELIANCE - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.5
| Stock Code | RELIANCE | Market Cap | 19,46,116 Cr. | Current Price | 1,438 ₹ | High / Low | 1,612 ₹ |
| Stock P/E | 48.9 | Book Value | 413 ₹ | Dividend Yield | 0.38 % | ROCE | 7.57 % |
| ROE | 6.61 % | Face Value | 10.0 ₹ | DMA 50 | 1,468 ₹ | DMA 200 | 1,439 ₹ |
| Chg in FII Hold | 0.44 % | Chg in DII Hold | -0.15 % | PAT Qtr | 9,396 Cr. | PAT Prev Qtr | 9,129 Cr. |
| RSI | 48.5 | MACD | -34.2 | Volume | 2,63,34,958 | Avg Vol 1Wk | 1,65,03,502 |
| Low price | 1,115 ₹ | High price | 1,612 ₹ | PEG Ratio | -13.3 | Debt to equity | 0.37 |
| 52w Index | 65.0 % | Qtr Profit Var | 7.74 % | EPS | 35.2 ₹ | Industry PE | 9.70 |
📊 Analysis: RELIANCE trades at a steep premium (P/E 48.9 vs industry 9.70) despite modest efficiency metrics (ROCE 7.57%, ROE 6.61%). EPS at ₹35.2 is decent, but dividend yield at 0.38% is negligible. The current price (₹1,438) is slightly below 50 DMA (₹1,468) and near 200 DMA (₹1,439), showing consolidation. RSI at 48.5 suggests neutral momentum, while MACD (-34.2) indicates bearish bias. Quarterly PAT improved (₹9,129 Cr → ₹9,396 Cr), reflecting earnings stability. Despite strong market leadership and FII inflows (+0.44%), stretched valuations and weak technicals make RELIANCE a cautious swing trade candidate.
💡 Optimal Entry Price: Around ₹1,420–₹1,430 (near support zone close to 200 DMA).
🚪 Exit Strategy: If already holding, consider booking profits near ₹1,500–₹1,520 (short-term resistance). Exit below ₹1,400 if weakness persists to protect capital.
✅ Positive
- Strong market capitalization and leadership position.
- Quarterly PAT growth of 7.74% shows earnings stability.
- EPS of ₹35.2 reflects consistent profitability.
- FII holdings increased (+0.44%).
- Debt-to-equity ratio at 0.37 is manageable.
⚠️ Limitation
- Valuation premium (P/E 48.9 vs industry 9.70).
- Weak ROCE (7.57%) and ROE (6.61%).
- Dividend yield negligible at 0.38%.
- Price trading below 50 DMA and near 200 DMA.
- MACD indicates bearish trend.
📉 Company Negative News
- Weak efficiency metrics despite strong revenue base.
- DII holdings decreased (-0.15%).
- PEG ratio (-13.3) signals poor growth valuation.
📈 Company Positive News
- Quarterly PAT improved sequentially.
- FII inflows support investor confidence.
- Strong trading volume above weekly average.
🏭 Industry
- Industry P/E at 9.70 highlights RELIANCE’s extreme overvaluation.
- Energy, telecom, and retail diversification provide long-term sectoral strength.
🔎 Conclusion
RELIANCE is fundamentally strong with diversified operations and stable earnings, but stretched valuations and weak technical signals limit swing trade potential. Entry near ₹1,420–₹1,430 may offer short-term opportunities, with exit near ₹1,500–₹1,520. Risk management is essential due to premium valuation and modest efficiency metrics.