Reliance share price falls over 4%, YTD return turns negative; Time for bottom fishing?

Reliance Industries share price plummeted by 4% on Monday, reaching a nine-month low amid heavy selling pressure. This sharp decline has turned Reliance shares’ year-to-date (YTD) returns negative.

During intraday trading on the BSE, RIL stock price dropped by as much as 4.03%, hitting a low of ₹1,285.10 per share, with the company’s market capitalization shrinking to approximately ₹17.40 lakh crore. Reliance stock has now fallen over 20% from its 52-week high of ₹1,608.95 per share (adjusted for a 1:1 bonus), recorded on July 8.

As of November 4, Reliance shares have declined by 0.5% YTD. However, over the past year, Reliance stock has delivered a gain of more than 11%.

Indian stock market crashed on Monday, with both the benchmark indices Sensex and Nifty 50, falling over 1.5% each. All the sectoral indices were trading with steep losses, dragged by Oil & Gas, Metals, Auto and Banks bleeding the most.

The billionaire Mukesh Ambani-owned oil-to-telecom conglomerate Reliance Industries reported a 4.77% fall in its consolidated net profit for the quarter ended September 2024 at ₹16,563 crore, down from ₹17,394 crore in the corresponding quarter of the previous year. RIL’s total income in Q2 rose 0.65% to ₹2,40,357 crore from ₹2,38,797 crore in the corresponding quarter last year.

RIL’s consolidated EBITDA in Q2FY25 fell 2% YoY to ₹43,934 crore, while EBITDA margin for the quarter stood at 17%, slightly lower than the 17.5% recorded in the same period last year.

After Reliance Q2 results, HDFC Securities reaffirmed its ‘ADD’ rating. The brokerage’s optimism is based on three main factors: a recovery in the O2C business, growth in the digital business driven by improved average revenue per user (ARPU) and subscriber additions, and potential value unlocking in the digital and retail segments.

Technicals

Reliance share price is trading around its 100-weekly moving average (WMA) at ₹1,288 and has a crucial support at ₹1,280 level, according to Milan Vaishnav, founder of ChartWizard FZE and Gemstone Equity Research.

“The decline in Reliance shares can be bought into, while existing investors can continue to hold RIL stock. A fresh entry can be made in Reliance shares at current levels with stop loss at around ₹1,265 – 1,270 levels,” Vaishnav said.

At 11:45 am, Reliance shares were trading 3.22% lower at ₹1,296.00 apiece on the BSE. 

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.