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

MUMBAI: Shares of Reliance Industries are more likely to rise 3-4% after the oil-to-telecom conglomerate reported a 43% rise in consolidated web revenue for the September quarter from a 12 months in the past. Analysts mentioned a robust rally in Reliance shares may assist finish the four-day decline in Sensex and Nifty.

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

Impartial market professional Ambareesh Baliga mentioned, “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 fast 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 mentioned.


JP Morgan maintained a impartial ranking 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 latest quarters the place earnings beat expectations. Defeated, albeit slight. “Whereas the earnings decline cycle is more likely to finish for the inventory, we do not see an improve cycle on the horizon simply but,” JPMorgan mentioned.

, Again to advice tales

Whereas key segments comparable to oil to chemical substances, retail and Jio are exhibiting premium valuations, one other re-rating should come from increased renewable possibility pricing, the brokerage mentioned.

Reliance’s shares have gained 24.35 per cent within the final one 12 months, 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 assist the worth, however within the medium time period, traders will probably be on the lookout for demerger of the three main companies, which is more likely to set off a serious upside this fiscal, mentioned Aniruddha. Sarkar, CIO, Quest Funding Advisors mentioned, “This inventory has outperformed YTD (12 months thus far) and the broader market within the final one quarter. I do not see any purpose why it might’t repeat its efficiency within the subsequent two quarters.”

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

Supply hyperlink