What's in store for Reliance Industries' stock post the 44th AGM?

Shares of Reliance Industries (RIL) ended 2.3 per cent lower at Rs 2,153.50 on BSE on Thursday in an otherwise strong market.

The Mukesh Ambani-controlled company held its 44th annual general meeting (AGM) on Thursday. The stock of the country’s most valuable company hit a high of Rs 2,214.80 and low of Rs 2,140 in intra-day trade. In comparison, the S&P BSE Sensex ended 0.75 per cent higher at 52,699 levels.

The stock has now dipped for the third day in a row, falling around 4 per cent during this period and wiping off nearly Rs 53,000 crore in market capitalisation. READ ABOUT IT HERE

Here's how the stock looks on the technical charts:

Reliance Industries Ltd (RELIANCE)
Likely target: Rs 2,500
Upside potential: 11%

The stock faces a hurdle at Rs 2,250 mark, chart pattern indicates. This resistance needs to be conquered on a closing basis with aggressive price strength. The momentum needs to be strong with volumes also supportive of the breakout.

Earlier, the counter did manage to close above Rs 2,250 level, though failed on the effectiveness and intensity of volumes. The same scenario was seen at the beginning of the March 2021 series, when RIL witnessed a sharp dip of 10 per cent after failing to cross the above-mentioned hurdle decisively.

This time, the counter has been trading sideways in a bid to cross the resistance of Rs 2,250. Over the past three days, RIL has retested its support range of Rs 2,150 – Rs 2,130 levels.



On the technical charts, one can clearly see the “Golden Cross” formation around the current levels. The 50-day moving average (DMA) is about to cross 200-DMA. If that happens, the support near the range of Rs Rs 2,150 – Rs 2,130 may see accelerated buying momentum. The next immediate support comes at Rs 2,080 and Rs 2,000 levels. A breakout above the Rs 2,250 level may open doors for Rs 2,500 with sentiment staying highly bullish.

From a medium-term perspective, the 200-daily moving average (DMA) and 50-weekly moving average (WMA) together indicate support at Rs 2,050 levels. This could act as first-level support in case the stock goes down purely on sentiment. There is a strong support at Rs 1,850 mark, which is the make or break level for the counter, as per the weekly chart. That said, the medium-term outlook stays bullish until this support of Rs 1,850 is held firmly.  CLICK HERE FOR THE CHART