The RIL share price fell as much as 1.5 percent to Rs 1,930 each on BSE in intraday trading on Tuesday. Reliance Industries Ltd shares fell for the second day in a row after the company reported lower than expected fiscal fourth quarter net income. Analysts said that while RIL’s fourth-quarter results were excellent year-over-year, they were below Street estimates. “A growing pandemic has caused stock prices to drop slightly,” AR Ramachandran, co-founder and trainer of Tips2Trades, told UK Time News Online. While Rs 2,045 remains a steep resistance. So far during the intraday session 6.54 lakh shares have traded on BSE while a total of 43.97 lakh shares have traded hands on NSE. Ramachandran added that technically long-term investors may be looking to buy levels close to Rs 1,920-1,930 for higher targets. Rs 1920 remains strong support for the RIL stock for this week.
What is dragging the RIL stock?
During the second consecutive day of fall, the RIL was seen trading 0.64 percent at Rs 1,946.75 each in late morning trades on the BSE. RIL’s stock has been in corrective mode since September 2020. It is trading and consolidating widely between Rs 2,200 and 1,800, an analyst said. “This signals a sideways trend in the short to medium term. The stock is also moving below its 20, 50, 100 and 200 day SMA, which supports a downward bias ahead, ”said Rajesh Palviya, head of technical research and derivatives at Axis Securities Ltd at UK Time News Online . From current levels immediate resistance is placed around Rs 2.050-2.100. Palviya added that on the downside, any breach of Rs 1,850 at the close could result in weakness to Rs 1,700. The daily and weekly RSI remains low and is below the 50 mark, indicating weakening sentiment.
The RIL stock hit a record high of Rs 2,369.35 each in September of last year. It retraced slightly after the results and moved closer to the lower band (i.e. 1830 levels) of the consolidation range again. “We suggest traders to continue with their long positions until it breaks the 1800 area decisively. If there was a rebound, he would face a hurdle around 2000 levels first, followed by 2100, ”Ajit Mishra, vice president – research, Religare Broking, told UK Time News Online.
Analysts also expect the increase in Covid-19 cases across the country and a prolonged lockdown to have dampened companies, including Reliance Industries Ltd, as well as sentiment. Additionally, rumors of a nationwide foreclosure in the coming days could also lead to a further correction across the markets.
(The stock recommendations in this article are made by the respective research and brokerage firm. UK Time News Online assumes no responsibility for their investment advice. Please consult your investment advisor before investing.)