RELIANCE - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.2
| Stock Code | RELIANCE | Market Cap | 18,22,171 Cr. | Current Price | 1,347 ₹ | High / Low | 1,612 ₹ |
| Stock P/E | 45.8 | Book Value | 413 ₹ | Dividend Yield | 0.41 % | ROCE | 7.57 % |
| ROE | 6.61 % | Face Value | 10.0 ₹ | DMA 50 | 1,472 ₹ | DMA 200 | 1,440 ₹ |
| Chg in FII Hold | 0.44 % | Chg in DII Hold | -0.15 % | PAT Qtr | 9,396 Cr. | PAT Prev Qtr | 9,129 Cr. |
| RSI | 24.7 | MACD | -41.6 | Volume | 1,04,05,426 | Avg Vol 1Wk | 1,72,97,241 |
| Low price | 1,115 ₹ | High price | 1,612 ₹ | PEG Ratio | -12.4 | Debt to equity | 0.37 |
| 52w Index | 46.7 % | Qtr Profit Var | 7.74 % | EPS | 35.2 ₹ | Industry PE | 9.25 |
📊 Chart & Trend Analysis: RELIANCE is trading at 1,347 ₹, well below its 50 DMA (1,472 ₹) and 200 DMA (1,440 ₹), indicating strong short-term and medium-term weakness. RSI at 24.7 suggests the stock is deeply oversold, while MACD at -41.6 confirms bearish momentum. Bollinger Bands show price hugging the lower band, signaling pressure but also potential for a technical rebound near support at 1,320–1,350 ₹.
📈 Momentum Signals: Current volume (1.04 Cr.) is lower than the 1-week average (1.72 Cr.), reflecting reduced participation. Oversold RSI may trigger a short-term bounce, but sustained recovery requires stronger volume and price action above 1,440–1,472 ₹.
🎯 Entry Zone: 1,320–1,350 ₹ (near support and oversold RSI)
🚪 Exit Zone: 1,450–1,500 ₹ (resistance near 200 DMA and 50 DMA)
📌 Trend Status: Bearish trend with consolidation signs. A reversal is possible if RSI rebounds and price sustains above 1,472 ₹ with volume confirmation.
Positive
- Strong market cap of 18,22,171 Cr. reflects industry dominance.
- EPS of 35.2 ₹ indicates profitability.
- FII holdings increased (+0.44%), showing foreign investor confidence.
- Quarterly PAT improved to 9,396 Cr. from 9,129 Cr. (+7.74%).
- Debt-to-equity ratio of 0.37 suggests manageable leverage.
Limitation
- Stock trading below both 50 DMA and 200 DMA, signaling technical weakness.
- High P/E of 45.8 compared to industry PE of 9.25, making valuation expensive.
- PEG ratio of -12.4 suggests poor growth-adjusted valuation.
- ROCE at 7.57% and ROE at 6.61% reflect modest efficiency.
Company Negative News
- DII holdings reduced (-0.15%), showing domestic investor caution.
- MACD indicates bearish crossover, limiting immediate upside.
Company Positive News
- Quarterly profit growth (+7.74%) highlights operational improvement.
- Strong institutional inflows from FIIs support sentiment.
Industry
- Industry PE at 9.25 is far lower than RELIANCE’s 45.8, suggesting sector peers are more reasonably valued.
- Energy and diversified conglomerate sector benefits from infrastructure expansion and consumer demand but faces cyclical pressures.
Conclusion
⚖️ RELIANCE is in a bearish phase, trading below key moving averages with oversold RSI. Entry near 1,320–1,350 ₹ offers tactical opportunity, while exits around 1,450–1,500 ₹ align with resistance. Strong fundamentals like market cap, EPS, and FII inflows support long-term stability, but expensive valuation and weak technicals warrant cautious positioning until a breakout above 1,472 ₹ confirms reversal.