Reliance share price gains for the second straight session after Q4 results— can the rally sustain?

Reliance share price extended its gains to the second consecutive session, rising over 2 per cent in intraday trade on Tuesday, April 29, buoyed by the company's better-than-expected March quarter (Q4) results. Reliance share price opened at ₹1,370.35 against its previous close of ₹1,368.50 and climbed 3 per cent to the level of ₹1,410.90 during the session. However, the stock pared some gains and ended at ₹1,400.30, up 2.32 per cent.

The stock rose 5.3 per cent on the BSE in the previous session. Thus, shares of India's largest company, in terms of market capitalisation, have risen nearly 8 per cent in two days.

Q4 boost: Reliance share price on an uptrend

Reliance Industries beat Street estimates with a 6 per cent year-on-year growth in its consolidated profit for Q4FY25, led by a resurgence in its retail business and better realisations in the telecom segment. However, its core oil-to-chemicals (O2C) business remained under pressure.

Reliance reported consolidated profit of ₹22,434 crore in Q4FY25, higher than the ₹18,471.4 crore consensus estimate of analysts polled by Bloomberg.

Meanwhile, the company's board also approved a fundraising plan of raising up to ₹25,000 crore through the issuance of listed, secured/unsecured, redeemable non-convertible debentures in one or more tranches on a private placement basis.

After the company's March quarter scorecard, several domestic and global brokerage firms expressed their positive views about Reliance stock, noting the strong performance of Jio and Reliance Retail and amid expectations of scaling up the new energy business.

Nomura maintained its "buy" rating on Reliance and raised its target price to ₹1,650, citing strong results across segments and highlighting three near-term triggers: the scale-up of the new energy business, upcoming tariff hikes for Jio, and the potential IPO/listing of Jio, which could drive significant value unlocking for the company.

JP Morgan maintained an "overweight" rating with a target price of ₹1,530, while Morgan Stanley also reiterated its "overweight" stance with a target price of ₹1,606. Macquarie retained its "outperform" with a target price of ₹1,500.

Among the domestic brokerage firms, Motilal Oswal Financial Services reiterated its buy rating with a target price of ₹1,515.

Kotak Securities also reiterated a buy but increased the stock's fair value to ₹1,520 from ₹1,400 earlier.

"In our view, with 5G investments behind it, capex should not rise. Apart from further improvement in retail, any firm announcements of a telecom IPO (and likely tariff hike before that) will be a catalyst," said Kotak.

Reliance stock: Can the rally sustain?

Reliance's share price looks poised for healthy gains in the long term due to the company's bright growth outlook, especially in the telecom, retail, and new energy segments.

However, due to prevailing uncertainty in the market, intermittent profit booking cannot be ruled out.

Reliance's share price hit a 52-week high of ₹1,608.95 on July 8 last year. At the current juncture, it is still nearly 13 per cent down from that level. So, experts believe the stock has more room to grow.

Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, recommends accumulating Reliance stock on every dip, targeting ₹1,550 in the medium term.

"We recommend accumulating Reliance shares on every dip up to ₹1,350, targeting ₹1,550 in the medium term. A daily close below ₹1,300 should be considered as a stop-loss level to manage risk," said Patel.

Patel pointed out that Reliance has shown a strong technical breakout on the weekly chart, surpassing its long-standing resistance level of ₹1,325, which notably aligns with the R3 yearly Camarilla pivot. This breakout marks a significant bullish development and suggests renewed investor interest.

Further supporting this view, Patel added that the Relative Strength Index (RSI) on the weekly scale has moved above the 50 level for the first time in 29 weeks, now standing near 62. This momentum shift confirms a potential trend reversal from bearish to bullish.

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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, as market conditions can change rapidly, and circumstances may vary.