Reliance share price extends gains to 3rd consecutive session; should you buy or book profit? | Stock Market News

Reliance Industries’ share price has been enjoying a healthy bullish run over the last few days. Rising for the third consecutive session, Reliance’s share price gained nearly 4 per cent in intraday trade on BSE on Friday, March 7. The stock opened at ₹1,214.05 against its previous close of ₹1,210.55 and rose 3.6 per cent to the level of ₹1,254. Around 1 PM, the stock traded at ₹1,249.65, up 3.23 per cent. In these three days, the stock has gained 8 per cent.

Reliance share price trend

Reliance’s share price has been under pressure over the last year, falling over 19 per cent as of March 6 close. Shares of the oil-to-telecom-to-retail conglomerate hit a 52-week high of ₹1,608.95 on July 8 last year and a 52-week low of ₹1,156 on March 3 this year. On a monthly scale, the stock has gained 4 per cent in March after a 5 per cent loss in February.

Reliance stock: Should you buy or book profit?

Experts appear positive about the stock for the long term.

After the stock fell to its 52-week low, many major brokerage firms upgraded the stock in the last few days, noting its comfortable valuation and healthy growth potential.

On Friday, March 7, global brokerage firm Macquarie upgraded the stock to an “outperform” from a “neutral” earlier while increasing its price target to ₹1,500 from ₹1,300.

According to a CNBC-TV18 report, Macquarie believes better earnings momentum, the potential listing of Jio and the gradual commissioning of new energy capacities are the three catalysts for the stock’s gains.

The report further said that Reliance Industries may improve its earnings CAGR to 15 per cent to 16 per cent over the financial year 2025-2027.

Kotak Institutional Equities upgraded Reliance stock to a ‘buy’ from an ‘add’ on March 5 but trimmed the target price to ₹1,400 from ₹1,435 earlier.

Kotak observed that Reliance stock has significantly corrected over the last year due to subdued retail. However, the brokerage firm expects the store-rationalisation cycle to end soon.

“Increased sanctions on Russia and repercussions of reciprocal tariffs by the US weaken the refining outlook. We have cut FY26/27E EBITDA by 1-3 per cent. Despite the cut, we expect earnings CAGR of nearly 11 per cent over FY24-27E,” said Kotak.

“With significant correction, the risk-reward is more favourable. The retail business will likely improve in the next few quarters. News flows on telecom business IPO timelines (and likely another tariff hike before that) can be a catalyst,” said Kotak.

Global brokerage firm Jefferies, on March 5, maintained a buy call on the stock with a target price of ₹1,660, noting that the stock’s valuation is the cheapest since Covid.

The stock’s recent underperformance is due to a slowdown in retail and subdued earnings in the oil-to-chemicals (O2C) segment.

“Pessimism seems extreme, with the current market cap implying $48 billion EV for retail versus $106 billion in the last funding round. A combination of SSG (same-store sales growth) and area addition should restore 15 per cent growth in retail in FY26. A tariff hike, likely listing of Jio, and improvement in O2C profitability are other potential triggers,” said Jefferies.

Reliance shares: What do technical indicators say?

Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, underscored that Reliance recently broke below its crucial support at ₹1,200 but quickly rebounded by 60-70 points, signalling strong buying interest.

Patel added that the stock found support at the S3 Camarilla monthly pivot, a key level indicating bullish strength. This suggests that the breakdown was likely a false move, and upside momentum could follow.

“We recommended a long position in the ₹1,220-1,235 range, targeting ₹1,300. The stop loss should be set below ₹1,200 on a daily closing basis to manage risk. If Reliance sustains above support, it may continue its upward movement, making this a favourable risk-reward trade,” Patel said.

Mandar Bhojane, an equity research analyst at Choice Broking, said Reliance Industries stock had broken its weekly declining trendline and formed a strong bullish candle with high volume, indicating significant buying interest.

Bhojane believes a decisive breakout above ₹1,260 will confirm further upside, with the next major resistance levels at ₹1,280 and ₹1,300. On the downside, immediate support is seen at ₹1,220 and ₹1,200. The broader trend remains strong unless the stock sustains below key support levels.

The stock trades above the 200-EMA on the weekly chart, reflecting a bullish market structure. The RSI stands at 57.71 and is trending upward, signalling strong momentum, while the Stochastic RSI has formed a positive crossover, further confirming buying strength.

According to Bhojane, these indicators suggest that any potential selling pressure would require strong bearish confirmation before considering short positions. Until then, the stock remains poised for further upside.

“Traders should closely monitor the ₹1,260 level, as a breakout could trigger a continued bullish rally. For a bearish reversal, the stock must sustain below ₹1,200 and form a strong reversal pattern,” said Bhojane.

Brokerage firm SMC Global Securities underscored while the stock remains a long-term buy given its solid growth prospects, caution is advised in the near term due to weak technical indicators.

“This week, the stock found support at its 200-day exponential moving average on the weekly charts and saw a sharp recovery from lower levels. However, this appears to be a technical bounce, as the broader chart pattern still shows a lower bottom formation,” said SMC Global.

“On the upside, the stock could face strong resistance in the ₹1,300-1,350 zone. On the downside, the 1,200 level is likely to act as a critical support level. A decisive break below 1,200 could signal further downside, with the next major support levels at 1,080 and 1,050,” said SMC Global.

“For a bullish reversal, the stock needs to sustain above the ₹1,350 level and form a strong reversal pattern. A breakout above ₹1,350 would confirm a shift in momentum, potentially offering a buying opportunity. Until then, investors should remain cautious,” said the brokerage firm.

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Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.