Reliance Industries shares snap a five-day losing streak, contribute to Nifty recovery – CNBC TV18

Shares of Reliance Industries Ltd. recovered swiftly in the second half of the trading session on Friday and ended with gains of close to 1%. With this, the Nifty 50 heavyweight snapped a five-day losing streak. For a better part of the session, the stock traded lower, which would have been a sixth straight day of losses, something that has never happened in 2024.

For the week, Reliance shares are now down 2.8%, which is the first weekly drop in three weeks. The stock had made a 52-week low of ₹1,203 recently, before a recovery to levels close to ₹1,300 and has seen selling pressure from those levels again.

On the charts, shares of Reliance Industries are heading towards oversold levels. The Relative Strength Index (RSI) on the charts is now at 43, having declined to lows of 35. An RSI reading below 30 indicates that the stock is “oversold.” The stock has corrected over 20% from its peak of over ₹1,600.

In recent times, multiple brokerages have come out with favourable recommendations on Reliance Industries, citing the correction in stock price as an opportunity to buy as risk-reward has turned favourable.

JPMorgan is “overweight” on Reliance Industries with a price target of ₹1,468. The brokerage said that after the recent large cuts, consensus forecasts build in a consolidated Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) growth of 14% in financial year 2026. It also sees little risk of EPS cuts going forward for the company and a better recovery in commodities, coupled with tariff hikes can surprise on the positive side. It also called relative valuations on the stock supportive.

On November 25, Citi upgraded Reliance Industries to “buy” from its earlier rating of “hold” and raised its price target to ₹1,530. The brokerage expects retail softness to continue for another couple of quarters but added that Jio remains well positioned to benefit not just from future tariff hikes but also from moves to improve data pricing and monetise 5G.

Out of the 38 analysts that track Reliance Industries, 32 of them now have a ‘Buy’ rating on the stock, while three analysts each have a ‘Hold’ and ‘Sell’ recommendation, respectively.

Shares of Reliance Industries ended 0.9% higher at ₹1,274.75.