Reliance Shares Experience Gains of Over 2% This Month Amid Turbulence on Dalal Street

Reliance Industries Continues to Outperform Amid Market Volatility

The Indian stock market has experienced a sharp selloff in March, with the Sensex and Nifty 50 losing almost 8% each. However, Reliance Industries (RIL), led by Mukesh Ambani, has demonstrated remarkable resilience, with its shares climbing more than 2% this month and poised to snap their two-month losing run.

Key Factors Contributing to Reliance's Resilience

The recent rally in Reliance's stock price can be attributed to improving market sentiment and expectations that crude oil prices may stabilize. This is due to global efforts to secure shipping through the Strait of Hormuz and the US-Iran war potentially entering its final phase. Additionally, the upcoming initial public offering (IPO) of Jio Platforms is likely to be a sentiment driver, with the company expected to file IPO papers with SEBI in two to three weeks.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Jio IPO Details

The Jio IPO is expected to be India's largest by a private company, with the company selling 2.5% stake at a valuation of between $100-$120 billion.

Brokerage Firm Recommendations

Motilal Oswal Financial Services has reiterated its buy call on Reliance Industries with a target price of ₹1,750. The firm believes that even if Middle East tensions ease soon, supply chain normalisation may lag, keeping product cracks elevated and supporting Reliance's refining petrochemical margins.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Technical Analysis

Technical experts are also positive about Reliance Industries at the current juncture. Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, notes that the stock is forming a strong base in the ₹1,370-₹1,390 zone and is approaching a key falling trendline resistance. A decisive daily close above ₹1,430 would indicate a breakout above the trendline and open the door for further upside.

Market Outlook

Ajit Mishra, SVP of Research at Religare Broking, believes that Reliance Industries is showing resilience amid market volatility. However, the upside seems capped due to a strong hurdle around ₹1,450. A decisive break above this level may result in the next leg of the up move towards the record high zone, i.e. ₹1,600.