RIL: RIL shares could rise 4% on sturdy Q2 numbers

MUMBAI: Shares of Reliance Industries are prone to rise 3-4% after the oil-to-telecom conglomerate reported a 43% rise in consolidated web revenue for the September quarter from a yr in the past. Analysts stated a powerful rally in Reliance shares may assist finish the four-day decline in Sensex and Nifty.

A virtually 3% acquire in Reliance’s London-listed World Depository Receipts signifies a constructive opening on Monday. The corporate introduced its second quarter outcomes after buying and selling hours on Friday.

Impartial market professional Ambareesh Baliga stated, “The inventory will reply positively on Monday and it may maintain the markets, which have been in a correction zone. However after that, I do not see a lot quick triggers for the inventory.”

He expects the inventory to rise to Rs 2,800-2,850 within the close to time period and Rs 3,200-3,250 within the medium time period. Reliance shares closed at Rs 2,625.75 on Friday, “The numbers have been higher than anticipated, be it retail or petrochemicals. Jio ARPU was barely higher than expectations,” Baliga stated.


JP Morgan maintained a impartial score on Reliance Industries with a December 2022 goal worth of Rs 2,465, saying markets ought to extensively welcome the second quarter outcomes because it was the primary in current quarters the place earnings beat expectations. Defeated, albeit slight. “Whereas the earnings decline cycle is prone to finish for the inventory, we do not see an improve cycle on the horizon simply but,” JPMorgan stated.

, Again to suggestion tales

Whereas key segments similar to oil to chemical substances, retail and Jio are exhibiting premium valuations, one other re-rating must come from increased renewable choice pricing, the brokerage stated.

Reliance’s shares have gained 24.35 per cent within the final one yr, whereas the Sensex has gained 50 per cent in the identical interval. The inventory has gained 38 per cent within the final six months, whereas the Sensex has gained 26.5%. “For the brief time period, good outcomes will proceed to help the value, however within the medium time period, traders might be on the lookout for demerger of the three main companies, which is prone to set off a significant upside this fiscal, stated Aniruddha. Sarkar, CIO, Quest Funding Advisors stated, “This inventory has outperformed YTD (12 months to this point) and the broader market within the final one quarter. I do not see any cause why it could’t repeat its efficiency within the subsequent two quarters.”

Technical analysts stated RIL shares are buying and selling above their 20-day easy shifting common, which signifies power within the close to time period. “Wanting on the day by day and weekly charts, if Reliance manages above Rs 2,660, we might even see a rally in direction of Rs 2,700, which is a direct hurdle for the inventory on a near-term foundation,” stated Rajesh Palviya, Head – Technical & Derivatives stated at Axis Securities.

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