Reliance Industries (NSE: RELIANCE) share price is having a major pullback after a huge rally. The shares of the Indian industrial giant are still maintaining the bullish market structure despite a strong sell-off. The latest analysis reveals that the price may have a very strong rebound if it holds the 2,500 level.
After a pullback in the past few days, Indian equities had a bounce on Wednesday. The benchmark indices Nifty 40 and BSE Sensex closed the day with 0.50% & 0.53% gains, respectively. This positive sentiment in the market can be attributed to Reliance shares, which had a 1.61% rebound.
Why Is Reliance Share Price Falling?
Despite today’s bounce, BSE: RELIANCE is still trading 4.11% below its last week’s high. The stock experienced a strong sell-off last week after the release of its Q1 financial results. The results were not satisfactory, as the company’s net profit fell 10.8% on a YoY basis, and the consolidated revenue also declined 5.3%.
The recent demerger of Jio Financial Services also seems to have a negative impact on Reliance Industries share price. Nevertheless, despite all these developments, the shares are still trading above the major psychological level of 2,500, which suggests that the bulls are still in control.
Reliance Share Price Rebounds Strongly
As mentioned in my previous NSE: RELIANCE forecasts, the shares have been respecting trading since October 2021. After the demerger of Jio Financial Services, the shares retested the range highs of 2,500 earlier this week and had a strong rebound.
Reliance Industries share price will become very bullish if the shares flip this level into a support zone. In this case, the first target for the bulls will be the 2,630 level. On the other hand, an acceptance below this level will put the downside target of 2,222 on the cards, which is the midpoint of this trading range.
In the meantime, I’ll keep sharing updated Reliance stock forecast and my personal trades on my Twitter where you are welcome to follow me.
