The ongoing Russia-Ukraine war has created ripples across global financial markets. One standout performer amidst this chaos has been Reliance Industries Limited (RIL).
On Friday, RIL’s stock witnessed a 3.35% surge, ending the day at ₹1,300. Experts believe this is just the beginning of a bullish trend for the Indian conglomerate, driven by the geopolitical crisis’s impact on crude oil prices.
Why Reliance is Gaining Momentum
1. Crude Oil Price Surge
Global crude oil prices have skyrocketed due to escalating geopolitical tensions. Mahesh M Ojha, AVP at Hensex Securities, explains, “Reliance is uniquely positioned to benefit from its buffer stocks of crude oil. As prices soar, the company’s profit margins are expected to expand, positively impacting its upcoming quarterly results.”
2. Diversified Revenue Streams
Reliance’s robust portfolio, spanning oil and gas, retail, and telecom, is another contributing factor. Its telecom arm, Jio, continues to dominate the Indian market, while its retail division is rapidly expanding into underserved regions.
Technical Analysis of Reliance Shares
Key Indicators
Shiju Koothupalakkal, Senior Manager at Prabhudas Lilladher, highlights that Reliance shares are currently showing signs of a bullish reversal. The following factors support this view:
| Technical Indicator | Current Status | Projection |
|---|---|---|
| Relative Strength Index (RSI) | Near oversold zone (30-35) | Indicates a potential uptrend |
| 50-Day Exponential Moving Average (DEMA) | ₹1,350 | Immediate resistance level |
| Support Level | ₹1,215 | Acts as a safety net |
Koothupalakkal adds, “If Reliance breaches the ₹1,350 mark, it could signal a long-term bullish trend, with potential targets of ₹1,500 in the next quarter.”
Experts’ Advice for Investors
- Short-Term Investors: Consider entering now, as the current price reflects an attractive entry point given the oversold RSI and bullish momentum.
- Long-Term Investors: Reliance’s diversified portfolio ensures it remains a resilient player in volatile markets. Holding for the long term could yield significant returns as its telecom and retail arms expand.
Geopolitical Factors at Play
The Russia-Ukraine war is far from over, and its effects on crude oil prices remain uncertain. However, experts predict that the current uptrend in oil prices will persist until geopolitical tensions ease.
Conclusion
Reliance Industries’ shares are poised for significant gains, driven by geopolitical tailwinds and its strong market fundamentals. Whether you are a seasoned investor or a newcomer, RIL’s stock offers a compelling opportunity in the current market scenario.
Disclaimer:
This article is for informational purposes only and does not constitute financial advice. Investors are advised to conduct their own research or consult with a financial advisor before making investment decisions.
