RELIANCE - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | RELIANCE | Market Cap | 18,32,981 Cr. | Current Price | 1,355 ₹ | High / Low | 1,612 ₹ |
| Stock P/E | 41.8 | Book Value | 418 ₹ | Dividend Yield | 0.41 % | ROCE | 7.89 % |
| ROE | 7.91 % | Face Value | 10.0 ₹ | DMA 50 | 1,382 ₹ | DMA 200 | 1,412 ₹ |
| Chg in FII Hold | -0.42 % | Chg in DII Hold | 0.36 % | PAT Qtr | 7,422 Cr. | PAT Prev Qtr | 9,396 Cr. |
| RSI | 45.8 | MACD | -9.46 | Volume | 76,49,943 | Avg Vol 1Wk | 1,54,73,613 |
| Low price | 1,290 ₹ | High price | 1,612 ₹ | PEG Ratio | -43.1 | Debt to equity | 0.41 |
| 52w Index | 20.1 % | Qtr Profit Var | -33.8 % | EPS | 32.4 ₹ | Industry PE | 14.4 |
📈 Trend Analysis: RELIANCE is trading at ₹1,355, below both the 50 DMA (₹1,382) and 200 DMA (₹1,412), indicating short-term and medium-term weakness. The stock has corrected from its 52-week high of ₹1,612 and is hovering near support levels.
📊 RSI: At 45.8, RSI suggests the stock is in a neutral-to-weak zone, leaning toward oversold territory, which may limit further downside.
📉 MACD: Negative MACD (-9.46) confirms bearish momentum, aligning with weak price action below moving averages.
📌 Bollinger Bands: Price is near the lower band, signaling possible consolidation or a short-term bounce if support holds.
🔎 Volume Trends: Current volume (76,49,943) is significantly below the 1-week average (1,54,73,613), showing reduced participation, which reflects cautious sentiment.
💡 Momentum Signals: Short-term momentum is weak. Optimal entry zone lies near ₹1,325–₹1,340 support levels. Exit/resistance zone is around ₹1,380–₹1,400, where selling pressure may emerge.
📌 Market Phase: The stock is consolidating with a bearish bias, attempting to stabilize near support after recent declines.
Positive
- 🚀 EPS of ₹32.4 supports earnings visibility.
- 💰 Dividend yield of 0.41% provides income stability.
- 📈 Large market capitalization (₹18,32,981 Cr) ensures strong liquidity.
- 🌍 DII holdings increased by 0.36%, showing domestic institutional confidence.
Limitation
- ⚠️ Current price below both 50 DMA and 200 DMA, signaling weakness.
- 📉 ROCE (7.89%) and ROE (7.91%) are modest compared to peers.
- 🔎 PEG ratio (-43.1) reflects growth inconsistency.
- 📊 High P/E ratio (41.8) compared to industry PE (14.4), suggesting premium valuation.
Company Negative News
- 📉 FII holdings decreased by 0.42%, showing reduced foreign investor interest.
- ⚠️ Quarterly PAT declined (₹7,422 Cr vs ₹9,396 Cr), down 33.8%.
Company Positive News
- 📈 EPS of ₹32.4 supports long-term earnings visibility.
- 💡 Dividend yield of 0.41% adds investor appeal.
- 🌍 DII inflows reflect domestic confidence in the stock.
Industry
- 🏭 Industry PE at 14.4, much lower than RELIANCE’s 41.8, highlighting premium valuation concerns.
- 📊 Sector growth driven by energy, telecom, and retail diversification.
Conclusion
⚖️ RELIANCE is consolidating with short-term weakness but supported by strong liquidity and diversified operations. High valuations, declining profits, and modest efficiency metrics remain concerns. Strategy: consider entry near ₹1,325–₹1,340 support zones and book profits around ₹1,380–₹1,400 resistance. The stock is consolidating with cautious bias, awaiting stronger momentum for a sustained recovery.