RELIANCE - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.8
| Stock Code | RELIANCE | Market Cap | 19,36,235 Cr. | Current Price | 1,431 ₹ | High / Low | 1,612 ₹ |
| Stock P/E | 44.2 | Book Value | 418 ₹ | Dividend Yield | 0.38 % | ROCE | 7.89 % |
| ROE | 7.91 % | Face Value | 10.0 ₹ | DMA 50 | 1,385 ₹ | DMA 200 | 1,416 ₹ |
| Chg in FII Hold | -0.42 % | Chg in DII Hold | 0.36 % | PAT Qtr | 7,422 Cr. | PAT Prev Qtr | 9,396 Cr. |
| RSI | 61.6 | MACD | 5.12 | Volume | 3,56,99,233 | Avg Vol 1Wk | 3,40,19,994 |
| Low price | 1,290 ₹ | High price | 1,612 ₹ | PEG Ratio | -45.5 | Debt to equity | 0.41 |
| 52w Index | 43.8 % | Qtr Profit Var | -33.8 % | EPS | 32.4 ₹ | Industry PE | 15.7 |
Chart & Trend Analysis:
RELIANCE is trading at ₹1,431, above its 50 DMA (₹1,385) and slightly above the 200 DMA (₹1,416), showing short-term strength but medium-term caution. RSI at 61.6 indicates bullish momentum but nearing overbought territory. MACD at 5.12 confirms mild positive crossover. Bollinger Bands place price near the upper band, reflecting buying interest. Volume (3,56,99,233) is slightly above the 1-week average (3,40,19,994), supporting momentum continuation.
Momentum Signals:
- Short-term momentum is mildly bullish with support from volume.
- Entry Zone: ₹1,410–₹1,420 (support near DMA levels).
- Exit Zone: ₹1,480–₹1,500 (resistance near upper trendline).
- Trend Status: Trending upward; momentum intact but vulnerable to profit-taking.
Positive
- Price trading above both 50 DMA and 200 DMA confirms bullish bias.
- Strong market capitalization of ₹19,36,235 Cr.
- DII inflows (+0.36%) show domestic institutional support.
- Volume above average supports momentum strength.
Limitation
- P/E (44.2) is significantly above industry average (15.7), indicating premium valuation.
- Weak ROE (7.91%) and ROCE (7.89%) highlight modest efficiency.
- Dividend yield at 0.38% offers limited income appeal.
- Negative PEG ratio (-45.5) reflects poor growth visibility.
Company Negative News
- Quarterly PAT declined sharply (₹7,422 Cr vs ₹9,396 Cr), showing earnings pressure.
- FII holdings declined (-0.42%), reflecting reduced foreign confidence.
Company Positive News
- Price recovery from ₹1,290 lows highlights resilience.
- DII inflows reinforce domestic investor confidence.
- Strong trading volumes support near-term bullish momentum.
Industry
- Industry P/E at 15.7 highlights RELIANCE’s steep premium valuation.
- Sector supported by energy, telecom, and retail diversification.
Conclusion
RELIANCE shows short-term bullish momentum with price above key averages and strong volume support. However, steep valuations and declining profits warrant caution. Tactical entries near ₹1,410–₹1,420 with exits around ₹1,480–₹1,500 provide a balanced swing trade setup. Long-term investors should monitor earnings growth and efficiency improvements before fresh accumulation.