RIL hits new high, m-cap nears Rs 20 trn mark; Chart hints further upside

Reliance Industries hit a high of Rs 2,950 in intra-day deals on Friday, while the market capitalisation stood at Rs 19.96 trillion at the highest point of the day.

Shares of Reliance Industries (RIL) hit a new all-time high of Rs 2,950, up 3.4 per cent, in intra-day trades on Friday on the back of a strong rally in the market. In the market capitalisation (mcap) of the company came within striking distance of the Rs 20 trillion mark, hitting a high of Rs 19.96 trillion today.

The stock has rallied over 9 per cent so far this week, and surged as much as 29 per cent in little over three months. On Friday, the The stock surpassed its previous high of Rs 2,919.95 touched on January 30.

At 1:10 PM, RIL had pared some gains and quoted Rs 2,897 - up 1.5 per cent. The counter had seen trades of around 3.5 lakh shares so far on the BSE.

Recently, Hurun Global 500 in its 2023 report said, RIL was the most valuable company in India, and featured among top 500 most valuable non-state-controlled companies in the world.

Reliance Industries stood on the 44th spot with a total valuation of $198 billion. The report highlighted that Reliance, which was the most valuable Indian company last year too. 

For the quarter ended December 2023, RIL reported a 9.3 per cent year-on-year (YoY) growth in its consolidated net profit at Rs 17,265 crore, backed by a 3.9 per cent YoY increase in revenue at Rs 2.25 trillion.

Earnings before interest, tax, depreciation, and amortisation increased by 16.7 per cent YoY to Rs 44,678 crore. The earnings growth was led by robust retail and oil and gas performance, steady digital services, and oil-to-chemicals (O2C).

That apart, the billionaire Mukesh Ambani's flagship company is reportedly close to merging its India media business with Walt Disney with a majority stake, a deal that values the US giant's Indian operations at just $3.5 billion.

The deal will strengthen RIL's hold over India's $28 billion media and entertainment market, especially after a separate $10 billion merger deal between Japan's Sony and India's Zee Entertainment collapsed last week.

Tech Outlook

Key Supports: Rs 2,800; Rs 2,735

Upside Potential: 5%

The stock continues to trade with a positive bias based on price-to-moving averages action. The daily chart shows, that post breakout in early November 2023, the stock has been forming higher tops and higher lows. The rising channels suggests that the stock could rally past the Rs 3,000-mark, and test Rs 3,050-odd levels in coming trading sesions.

If the stock were to consolidate post the recent gains, it can test Rs 2,800 on the downside. The 20-DMA (Daily Moving Average) has been providing strong support for the stock on a consistent basis in the last three months. Presently, the 20-DMA stands at Rs 2,735. CLICK HERE FOR THE CHART