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Reliance Industries (NSE: RELIANCE) share price has broken above its March high as Indian equities rebound after a long slump. The benchmark indices BSE Sensex and NIFTY 50 are significantly up since their March 2023 bottom. Our analysis shows that the Reliance share price might be due for a correction in the coming days.
On Thursday, the Indian stock market showed a positive sentiment as the Nifty 50, and BSE Sensex both indices turned green. Reliance shares also depicted a positive price action and were up 1.15% today. This means the stock is experiencing a second consecutive green week after months of bearishness.
According to the most recent Reliance Industries (RIL) news, the company has kept the prices of PVC resin suspension grades for the local markets unchanged. Just a few days ago, the industrial giant lowered the Mono-ethylene glycol (MEG) prices in the domestic markets.
A possible reason behind the ongoing rally in Reliance Industries share price could be the recent earnings report. The company’s earnings beat the estimates by 7.93%. However, its revenue still fell by 6.43% and stayed at INR 146.35 billion.
Technical analysis of NSE: RELIANCE suggests that the stock might have a correction soon. This is due to the fact that the price is retesting a major supply zone which has already resulted in a pullback in February 2023. This is the 2,440-2,480 region, which is marked red in the following chart.
Another confluence behind this Reliance share price forecast is the presence of a 200-day moving average. The 200 MA currently lies at 2,472, which is just a few points above the current level. A break above this level may result in another leg up.
I’ll keep posting my updated outlook on Reliance and other assets in my free Telegram group, which you’re welcome to join.
This post was last modified on May 04, 2023, 14:45 BST 14:45