Demerger done; here's how to trade RIL shares ahead of Q1FY24 results

Reliance Industries shares will be in the spotlight ahead of its June quarter earning later this evening. The stock price of the Billionaire Mukesh Ambani’s firm reached all-time high a few sessions ago, prior to the demerger of its financial business.

While the stock has struggled since the start of this year, it succeeded to hit a new historic peak post June last year. 

The overall trend of the stock has been sideways since the end of 2021. However, striking a new all-time high could spark the next rise in the stock.

The major breakout for the Reliance Industries shares exits over Rs 2,800-level, as per the daily chart. On the downside, support is found at Rs 2,500 and Rs 2,400 level.

A break out over Rs 2,800 might see the stock heading in the direction of Rs 3,200 to Rs 3,500 levels. Following the demerger, the current momentum still remains highly optimistic. The moving averages breakout of the “Golden Cross” defines higher upside in the upcoming months. 

Unless the support of 200-day moving average (DMA) is breached, the bullish bias shall see accumulation along the upward rally. 

Prior to the demerger, the counter was experiencing resilient strength in the overbought category of Relative Strength Index (RSI), which shall now regain the same bias. 

According to the weekly chart, Rs 2,500 remains a key driver for the upward bias and shall hold ground firmly during any throwback. The level of Rs 2,200 also serves as medium-term support, displayed on the monthly set-up. CLICK HERE FOR THE CHART