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Published: September 30, 2024
Updated: September 30, 2024

RIL Shares Drop from Record High: Is This the Right Time to Invest?

Recent Decline in RIL Stock Price

Shares of Reliance Industries Ltd. (RIL), India's largest company by market capitalization, have experienced a decline of 8.95% from their all-time high of ₹3,217.90, which was reached on July 8, 2024. On Tuesday, the stock closed 0.81% lower at ₹2,929.80. Despite the recent drop, market experts remain largely optimistic about the future prospects of RIL.

Analysts Maintain Positive Outlook

According to market analysts, Reliance Industries is expected to continue performing well, with large-cap stocks like RIL being a preferred choice for investors. Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, recommends holding onto the stock, citing its potential for future gains. He notes that large-cap stocks are poised to do well in the current market environment.

Key Technical Support Levels

From a technical standpoint, analysts have identified key support levels for RIL at ₹2,920 and ₹2,900. The stock has been moving within a consolidation zone, fluctuating between ₹2,900 and ₹3,050. A breakthrough above this range could signal a more defined trend for the stock. Osho Krishan, Senior Research Analyst at Angel One, pointed out that ₹2,920 should provide strong support, while resistance around ₹3,050 will be a key barrier to overcome in the near term.

Potential for Short-Term Gains

Technical analysis indicates that RIL is poised for a potential short-term bullish reversal. According to Rupak De, Senior Technical Analyst at LKP Securities, the stock has broken above its falling trendline and could move toward the upper band of its long-term upward-sloping channel. In the short term, RIL could rise to ₹3,300 if it holds its current support level. However, a break below ₹2,920 might cause the rally to lose momentum.

Investment Strategy: Accumulate at Key Levels

Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, advises investors to consider accumulating RIL shares around the ₹2,920 level, with an upside target of ₹3,050. He recommends placing a stop-loss at ₹2,900 to protect against further downside risk.

Hold or Accumulate for Potential Gains

Despite the recent dip, Reliance Industries remains a strong player with positive growth prospects. The stock is expected to recover and may reach higher levels in the near future. Investors are advised to hold or accumulate the stock at key support levels, while keeping an eye on technical indicators for potential price movements.