Reliance Industries Ltd. (RIL) Shares Edge Higher Amid Market Volatility

Key Statistics:

• ₹1,410.90: High price reached on BSE on Thursday
• 1.5%: Gain in Reliance shares during the session
• ₹1,500: Target price for Reliance shares
• ₹1,730: Target price for Reliance shares as per JM Financial
• 22%: Upside potential from current levels as per JM Financial

Reliance Industries Ltd. (RIL) shares edged higher on Thursday, despite broader market pressure, following US President Donald Trump's announcement to build a new oil refinery in Texas with support from the Mukesh Ambani-led conglomerate.

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Technical Analysis:

Reliance Industries is currently in a consolidation phase following the recent correction, with the stock attempting to stabilize around key support levels. Market participants are closely watching whether the stock can regain momentum and move back toward the ₹1,500 mark. However, near-term sentiment remains cautious as the stock continues to trade below important resistance levels.

Brokerage Outlook:

JM Financial has maintained a Buy rating with a target price of ₹1,730, implying an upside potential of around 22% from current levels. The brokerage believes that the market is currently underestimating the long-term growth potential of Reliance's digital business. JM Financial expects EBITDA in the digital segment to compound at 15-16% over the next two to three years, driven largely by 10-11% growth in average revenue per user (ARPU).

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Fundamental Outlook:

The fundamental outlook for Reliance Industries remains positive, citing improving valuations and multiple business growth triggers. The expected IPO of Jio is seen as a major potential catalyst for the stock, which analysts believe may take place in the coming months once regulatory norms for large public issues are finalized. A potential telecom tariff hike after the listing could also boost profitability.

Key Risks:

The downside risk appears limited in the near term due to a strong demand zone around ₹1,370-₹1,350, where buyers have historically stepped in. However, failure to hold ₹1,370 may trigger a deeper correction toward ₹1,300.

Conclusion:

Reliance Industries could remain a closely watched stock for investors seeking opportunities amid market volatility, driven by strong long-term growth drivers, improving valuations, and fresh global partnerships.