RELIANCE - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.5
| Stock Code | RELIANCE | Market Cap | 19,07,618 Cr. | Current Price | 1,408 ₹ | High / Low | 1,612 ₹ |
| Stock P/E | 48.0 | Book Value | 413 ₹ | Dividend Yield | 0.39 % | ROCE | 7.57 % |
| ROE | 6.61 % | Face Value | 10.0 ₹ | DMA 50 | 1,427 ₹ | DMA 200 | 1,433 ₹ |
| Chg in FII Hold | 0.44 % | Chg in DII Hold | -0.15 % | PAT Qtr | 9,396 Cr. | PAT Prev Qtr | 9,129 Cr. |
| RSI | 49.8 | MACD | -9.44 | Volume | 1,01,74,980 | Avg Vol 1Wk | 1,89,22,057 |
| Low price | 1,115 ₹ | High price | 1,612 ₹ | PEG Ratio | -13.0 | Debt to equity | 0.37 |
| 52w Index | 59.1 % | Qtr Profit Var | 7.74 % | EPS | 35.2 ₹ | Industry PE | 13.7 |
📊 Chart Analysis: RELIANCE is trading slightly below both its 50 DMA (1,427 ₹) and 200 DMA (1,433 ₹), showing mild weakness. RSI at 49.8 suggests neutral momentum, while MACD at -9.44 indicates bearish divergence. Bollinger Bands show price hovering near the mid-to-lower band, reflecting consolidation. Current volume (1,01,74,980) is significantly below average (1,89,22,057), showing reduced participation.
📈 Momentum Signals: Short-term momentum is neutral-to-weak. RSI near 50 suggests balance between buyers and sellers, while MACD remains negative, limiting upside potential.
💰 Entry Zone: 1,380 ₹ – 1,410 ₹ (near support levels).
📉 Exit Zone: 1,440 ₹ – 1,460 ₹ (resistance near 200 DMA).
🔎 Trend Status: The stock is consolidating with mild bearish bias, showing potential reversal only if price sustains above 1,433 ₹ with stronger volume.
Positive
- Quarterly PAT growth (9,396 Cr vs 9,129 Cr) shows earnings stability.
- FII holdings increased (+0.44%), reflecting foreign investor confidence.
- EPS at 35.2 ₹ supports valuation strength.
Limitation
- High valuation with P/E of 48.0 compared to industry PE of 13.7.
- ROCE (7.57%) and ROE (6.61%) are relatively weak, showing inefficient capital usage.
- Trading below both 50 DMA and 200 DMA, signaling weakness.
Company Negative News
- DII holdings declined (-0.15%), showing reduced domestic institutional support.
- Stock corrected from 52-week high (1,612 ₹ to 1,408 ₹).
Company Positive News
- Quarterly profit variation (+7.74%) reflects improving earnings momentum.
- Strong EPS and consistent PAT support long-term valuation.
Industry
- Industry PE at 13.7 indicates relatively cheaper valuations compared to RELIANCE’s higher P/E.
- Sector outlook remains stable with diversified business operations supporting growth.
Conclusion
⚠️ RELIANCE is currently in a consolidation phase with mild bearish bias. Entry is favorable near 1,380–1,410 ₹ support with a strict stop-loss. Exit should be considered near 1,440–1,460 ₹ resistance. Long-term investors may wait for confirmation of reversal above 1,433 ₹ with stronger volume before adding positions.