Reliance Industries: Bullish Momentum with Strong Support Levels

Technical Analysis:

The Reliance stock has exhibited an insatiable bullish trend in the last three decades. In particular, in 2020, the stock witnessed a strong resistance level around ₹1000-₹1050, which was tested repeatedly during 2020-2021. However, in August 2021, this resistance level was broken, becoming a powerful support level in 2022-2023.

The stock then developed a new resistance of ₹1250-₹1285, which was broken in December 2023, resulting in an all-time high of ₹1608 in July 2024. Post this high, the market went into a correction, falling to ₹1156. Even in the fall, the stock kept developing a series of higher lows, which is a positive signal. The series of higher lows are:

• ₹830 (initial higher low)
  
• ₹871 (second higher low)
  
• ₹989 (third higher low)
  
• ₹1156 (latest higher low)
  

The stock has given a strong pullback from ₹1156 and is currently at ₹1251. The ₹1250-₹1285 range is a key resistance. If the stock takes out this resistance and confirms support with bullish candlestick patterns, it may result in a retest of the all-time high levels.

The recent sharp pullback from ₹1156 is in line with recent market trends and improving investor sentiment. Traders need to watch out for a breakout above ₹1285, as it may lead to more bullishness.

Fundamental Analysis:

Reliance announced strong Q3 FY25 financials, reflecting steady growth in income and profits. The following are the major financial numbers (figures in ₹ crore):

• Total Income: ₹2,43,865 in Q3 FY25, ₹2,34,956 in Q2 FY25, ₹2,27,970 in Q3 FY24.
  
• Total Expenses: ₹2,13,257 in Q3 FY25, ₹2,06,573 in Q2 FY25, ₹2,00,217 in Q3 FY24.
  
• Profit Before Tax: ₹30,608 in Q3 FY25, ₹28,383 in Q2 FY25, ₹27,753 in Q3 FY24.
  
• Profit After Tax: ₹18,540 in Q3 FY25, ₹17,394 in Q2 FY25, ₹17,265 in Q3 FY24.
  

The overall revenue of the company went up 3.8% QoQ from ₹2,34,956 crore in Q2 FY25 and 7% YoY from ₹2,27,970 crore in Q3 FY24. Profit before tax has grown steadily, up 7.8% QoQ and 10.3% YoY. So has profit after tax, affirming Reliance's robust financial position.

Current Market News and Investments

Reliance Industries Ltd has recently made a significant investment proposal of ₹50,000 crore in Assam within the next five years, underlining its focus on local development. The investment was underscored at the Advantage Assam Summit, where Reliance's top leadership reaffirmed their priority on Assam's development during Prime Minister Narendra Modi's tenure.

The major themes of the announcement are:

• Strategic investment in Assam to enhance economic growth and employment.
  
• "Act East, Act Fast, Act First" slogan, making Assam a center of opportunities in Southeast and East Asia.
  
• Enhanced connectivity in Assam, physical, digital, and emotional connections with the rest of India.
  
• The dream of turning Assam from the "Tea Paradise" to a technology and innovation hub of the world.
  

This announcement has further strengthened investor confidence, contributing to the recent pullback from ₹1156. Investors and traders should closely watch how these developments impact Reliance’s future financials and stock movement.

Conclusion:

Reliance remains bullish in nature with the help of higher lows and robust finances. If the stock breaches the resistance zone of ₹1250-₹1285, it may approach all-time highs. Traders and investors can watch the breakout point closely along with important support points for risk management.

Disclaimer: This analysis is for educational purposes only. Investors should make their own decisions prior to any trading.