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Reliance Industries (NSE: RELIANCE) share price is trading lower after a strong rally at the end of May 2023. The shares of the Indian corporate giant are currently 2.09% down from their May highs. The latest analysis shows that the stock is trading in a very critical zone and needs to bounce soon.
On Friday, Indian equities slid as the Nifty 50 and BSE Sensex both indices turned red. Consequently, Reliance shares also plummeted by 0.73% during the last trading session of the week. This was the second consecutive red day for the shares of the Indian multinational conglomerate.
According to the most recent Reliance Industries Limited (RIL) news, the company has increased the PVC prices for the domestic markets of India. In other news, after a nod from the country’s central bank, HSBC bank has performed its first non-deliverable forex derivative transaction with Reliance Industries. RBI just recently allowed such transactions for resident Indians.
The latest data showed that the Indian economy grew 7.2% last year. This was higher than the survey estimate of 7%. This caused a surge in Reliance share price at the end of May 2023. Reliance recently released its 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 bulls are losing momentum. This is due to the fact that the RSI and MFI are showing bearish divergences on the daily chart. If the bulls fail to hold the 2,440-2,480 region, then things may turn very bearish soon.
Reliance Industries share price forecast will become very bearish if the price breaks below this region. This can send the shares to their next support that lies within the 2,300-2,320 range. The broader market sentiment and RBI decision will play a key role in the Reliance stock’s valuation.
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 Jun 09, 2023, 16:53 BST 16:53