RIL shares trade near 52-week high, analysts turn bullish

NEW DELHI: Shares of Reliance Industries (RIL) inched closer today to their 52-week high hit in October last year. The stock advanced over 3 per cent in Mumbai trade, giving thrust to the overall market as well.

The buying in the stock comes amid news that Reliance Brands, one of its subsidiaries, bought a majority stake in Abu Jani Sandeep Khosla — a 35-year-old couture house. Reliance has been doubling down on its retail push, increasing its reach in both online and offline channels. We have already seen its shrewdness in the taking over of Future’s assets, and numerous startups it has acquired in recent years.

Analysts have been bullish on the counter for a while now, and even recently many have upgraded target prices on the counter. Goldman Sachs is one of them that has set a target of Rs 3,200 on the stock.

Thanks to recent buying in Reliance, even technical analysts have turned bullish on the stock. Ruchit Jain, Lead Research, 5paisa.com, on Tuesday recommended traders to buy RIL with a short-term target of Rs 2,780.

“The stock prices have formed a ‘Higher Top Higher Bottom’ structure from the recent swing lows on the daily chart. This indicates a short-term uptrend and prices have also given recently a breakout from a falling trendline resistance,” he said.

“The volumes on the recent up move are good and hence, traders can look to buy the stock in the range of Rs 2,620-2,600 for a potential target of Rs 2,780. The stop loss for this trade should be placed below Rs 2,520.”

As of 1.30 pm, Reliance Industries traded at Rs 2,719 on BSE.