What do technicals indicate?
“Reliance Industries is currently undergoing a corrective phase after posting a new record high near the Rs 1,610 mark, with the stock slipping below its short-term 20-day and medium-term 100-day exponential moving averages, signalling a loss of near-term momentum,” says Ajit Mishra, SVP at Religare Broking.
Mishra believes this decline is part of a healthy consolidation within a broader uptrend rather than a trend reversal. Volumes during the pullback remain moderate, suggesting the absence of panic selling. The Rs 1,380–1,440 zone is expected to provide strong support, while the Rs 1,520–1,600 band is likely to act as a near-term resistance. Investors with a medium-to-long-term horizon may consider using this phase to accumulate on declines near the support zone.
Echoing the same view, Aakash Shah Technical Research Analyst at Choice Equity Broking said Reliance Industries is currently witnessing a healthy pullback within its broader uptrend. After a strong rally from the October lows, the stock faced rejection near the Rs 1,580–1,600 resistance zone and has retraced toward its key moving averages. Price is now testing the 100 EMA and is approaching the 200 EMA, which act as crucial medium- to long-term support levels.
The 1,440–1,450 zone, coinciding with the 200 EMA, is an important demand area. As long as Reliance holds above this support, the stock may stabilize and attempt a rebound. However, failure to hold the 200-day EMA could lead to further downside toward the Rs 1,400 level, which emerges as the next key support zone on the chart. A sustained recovery above the Rs 1,520 zone could revive bullish momentum and open the door for a move back toward the Rs 1,580–1,600 resistance band.
Last week on Friday, Goldman Sachs raised its 12-month price target on Reliance Industries to Rs 1,835 a share. The brokerage reiterated its Buy rating, arguing that near-term moderation in retail will be offset by improving refining fundamentals and steady momentum in telecom, keeping Reliance’s medium-term earnings trajectory intact.Nomura estimates Reliance Industries’ consolidated EBITDA at Rs 47,600 crore for 3QFY26F, reflecting a 4% quarter-on-quarter increase. While the refining segment is expected to deliver a strong performance, this could be partly offset by weaker petrochemical margins and a muted showing in the retail business. Meanwhile, Jio is likely to report steady operating performance during the quarter. Analysts have a Buy call and a target price of Rs 1,700 per share.
(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)
