Reliance Industries (RIL) rose 0.39% to Rs 1568.30 after the company signed an agreement with state-owned Abu Dhabi National Oil Company (ADNOC) to explore a joint venture for building an ethylene dichloride (EDC) facility in Ruwais.
The RIL scrip has traded in the range of Rs 1551 and Rs 1575.15 so far during the day.
Under the terms of the agreement, RIL and ADNOC will evaluate the potential creation of a facility that manufactures Ethylene Dichloride (EDC) adjacent to ADNOC's integrated refining and petrochemical site in Ruwais (Abu Dhabi) and strengthen the companies' existing relationship supporting future collaboration in petrochemicals.
ADNOC would supply ethylene to the potential joint venture and provide access to world-class infrastructure at Ruwais, while RIL will deliver operational expertise and entry to the large and growing Indian vinyls market, in which it is a key participant.
EDC is a basic building-block for manufacture of PVC, a polymer product in increasingly higher demand globally. PVC plays a critical role in the housing and agriculture sectors, and demand for PVC, particularly in the Indian vinyls market, is expected to grow significantly.
RIL is India's largest private sector company. Its activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and digital services.
RIL's consolidated net profit rose 18.3% to Rs 11,262 crore on 3.6% rise in net sales to Rs 1,48,526 crore in Q2 September 2019 over Q2 September 2018.
On the technical front, the stock's RSI (relative strength index) stood at 61.88. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.
The stock was currently trading above its 50-day moving average (DMA) placed at Rs 1456.50 and its 200 DMA placed at Rs 1326.94.
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