Buy Reliance Industries stock: RIL share may soar above Rs 2600; charts signal technical pullback in near-term

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Reliance Industries share price is likely to gain 9 per cent to Rs 2,615 apiece in near-term, as the stock has been witnessing buying demand from the key support area of Rs 2300-2370 for the third time since May 2022, analysts at ICICI direct Research said. It expects the RIL stock to witness a gradual pullback from the current oversold territory, thus offering a fresh entry opportunity with a favourable risk-reward set up. On Wednesday, RIL shares were trading 1.7 per cent down at Rs 2,354.05 apiece on BSE.  The stock is down nearly 18 per cent from the all-time highs, hit in April this year.

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Reliance Retail has been one of the fastest and largest growing retailers over the recent time. During FY18-22 the company has recorded a staggering revenue CAGR of 30% with sales worth nearly Rs 2 lakh crore in FY22. On Tuesday, Mukesh Ambani’s Reliance Retail announced the opening of its fashion & lifestyle departmental store, Reliance Centro. This is the first such outlet by Mukesh Ambani’s Reliance Industries conglomerate, and is located in Vasant Kunj, New Delhi. The departmental store by Reliance will compete against the likes of Shoppers Stop, Lifestyle International, and other fashion & lifestyle departmental stores. 

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Analysts noted that the long-term prospects and dominant standing of Reliance Industries in each of its product and service portfolio provide comfort for long term value creation. “RIL’s consumer business will be the growth driver, going ahead. The company has a strong balance sheet while its traditional business will continue to generate steady cash flows,” it added.

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