RIL share price falls for 2nd straight day after Q4 results; charts show it may fall more

RIL stock has been in the corrective mode since September 2020.
(Image: REUTERS)

RIL share price fell as much as 1.5 per cent to Rs 1,930 apiece on BSE in intraday deals on Tuesday. Reliance Industries Ltd stock has fallen for the second consecutive day after the company reported the fiscal fourth quarter net profit below expectations. Analysts said that even though the fourth-quarter results of RIL were excellent on a year-on-year basis, it was below lofty street estimates. “A surging pandemic has led to a mild drop in stock prices,” AR Ramachandran, Co-founder & Trainer, Tips2Trades, told Financial Express Online. While Rs 2,045 remains a stiff resistance. So far in the intraday session, 6.54 lakh shares have traded on BSE, while a total of 43.97 lakh shares have exchanged hands on NSE. Ramachandran added that technically, long-term investors can look to buy near Rs 1,920-1,930 levels for higher targets. Rs 1920 remains strong support for RIL stock for this week.

What’s dragging RIL stock?

In the second straight day of fall, RIL was seen trading 0.64 per cent down at Rs 1,946.75 apiece in late morning deals on BSE. RIL stock has been in the corrective mode since September 2020. It is broadly trading and consolidating within Rs 2,200-1,800, said an analyst. “This signals a sideways trend for the short to medium term. The stock is also trending below its 20, 50, 100 and 200 day SMA which supports bearish bias ahead,” Rajesh Palviya, Head — Technical & Derivatives Research, Axis Securities Ltd, told Financial Express Online. From current levels an immediate resistance is placed around Rs 2,050-2,100. Palviya added that on the downside any violation of Rs 1,850 on a closing basis may cause weakness towards Rs 1,700. The daily and weekly RSI continue to remain weak and placed below 50 mark which signals weakening sentiments.

RIL stock hit a record high of Rs 2,369.35 apiece in September last year. It has retraced marginally after the results and inching towards the lower band (i.e. 1830 levels) of the consolidation range again. “We suggest traders continue with their positional longs until it breaks the 1800 zone decisively. In case of a rebound, it would face a hurdle around 2000 levels first, followed by 2100,” Ajit Mishra, VP – Research, Religare Broking, told Financial Express Online.

Analysts also expect that increasing Covid-19 cases across the country and an extended lockdown have dampened businesses including Reliance Industries Ltd along with the sentiment. Moreover, rumours of a nationwide lockdown in the coming days could also lead to a further correction in overall markets.

(The stock recommendations in this story are by the respective research and brokerage firm. Financial Express Online does not bear any responsibility for their investment advice. Please consult your investment advisor before investing.)