RELIANCE - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 4.0

📊 Chart Patterns: Reliance is trading above both its 50 DMA (1,505 ₹) and 200 DMA (1,428 ₹). Current price (1,565 ₹) is close to its 52-week high (1,581 ₹), showing strong bullish momentum. The broader pattern indicates higher highs and higher lows, confirming an uptrend.

📈 Moving Averages: Price > 50 DMA and > 200 DMA → bullish alignment, signaling strength in both short-term and long-term trends.

📉 RSI: 56.4 → neutral to slightly bullish, not overbought, suggesting room for further upside.

📈 MACD: 12.1 → positive crossover, confirming bullish momentum.

📊 Bollinger Bands: Price near upper band, indicating strength but also caution for possible short-term consolidation.

📊 Volume Trends: Current volume (75,98,996) is slightly below 1-week average (81,88,036) → momentum is positive but needs stronger participation for breakout confirmation.

📍 Support Levels: 1,505 ₹ (DMA 50), 1,428 ₹ (DMA 200), and 1,350 ₹.

📍 Resistance Levels: 1,581 ₹ (recent high), 1,600 ₹, and 1,650 ₹.

🔎 Trend: The stock is trending upward with bullish signals. A breakout above 1,581 ₹ could trigger further rally toward 1,600–1,650 ₹, while a drop below 1,505 ₹ may lead to consolidation.

Positive

• 📈 EPS at 34.7 ₹ supports earnings strength.
• 📊 ROCE (7.57%) and ROE (6.61%) show moderate capital efficiency.
• 📊 DII holdings increased (+0.53%), showing domestic investor confidence.
• 📊 Quarterly profit variation (+18.4%) indicates growth momentum.

Limitation

• ⚠️ High P/E ratio (54.2) compared to industry PE (11.3) → valuation premium.
• ⚠️ PEG ratio (-14.7) suggests poor earnings growth relative to valuation.
• ⚠️ Dividend yield at 0.36% is low.
• ⚠️ Volume slightly below average, limiting breakout strength.

Company Negative News

• 📉 FII holdings declined (-0.56%), showing reduced foreign investor confidence.
• 📉 PAT fell sequentially from 10,036 Cr. to 9,129 Cr.

Company Positive News

• 📈 Quarterly profit growth (+18.4% YoY).
• 📊 Price trading above both 50 DMA and 200 DMA, showing resilience.
• 📊 Domestic institutional investors increasing stake.

Industry

• 🏭 Diversified conglomerate sector PE at 11.3, much lower than Reliance’s PE (54.2), suggesting overvaluation relative to peers.
• 📊 Industry supported by energy, telecom, and retail growth drivers.

Conclusion

🔎 Reliance is trending upward with bullish signals (MACD positive, RSI healthy, price above key DMAs). Optimal entry zone lies near 1,505–1,520 ₹ on dips, while exit/resistance zone is 1,581–1,600 ₹. Long-term investors may hold given strong fundamentals and diversified business, while short-term traders can look for breakout trades above 1,581 ₹ for momentum toward 1,650 ₹.