Reliance share price up in sync with Sensex, Nifty 50 YTD. Buy, sell or hold? 5 experts weigh in

Reliance share price: Shares of India's largest company by market capitalisation, Reliance Industries, have risen in sync with the Indian stock market benchmarks, the Sensex and the Nifty 50, year-to-date (YTD). Till September 5 close, Reliance share price has gained 16 per cent on the BSE this year against a 16 per cent gain in the Nifty 50 and 14 per cent gain in Sensex.

After reaching a 52-week low of ₹2,221.05 on October 26 last year, the stock posted gains for the next five consecutive months. This year, it has only declined in April (down nearly 2 per cent), May (down nearly 2 per cent), and July (down nearly 4 per cent). The stock hit its 52-week high of ₹3,217.90 on July 8, before facing profit booking. Currently, it trades 7 per cent below its 52-week high.

On Thursday, September 5, the stock opened at ₹3,039.45 against its previous close of ₹3,029.80 but slipped nearly 2 per cent to ₹2,975 during the session. The stock closed 1.41 per cent down at ₹2,987.15. The equity benchmark Sensex closed 0.18 per cent down at 82,201.16.

Meanwhile, the board approved the bonus issue at a 1:1 ratio on Thursday, September 5. The issue was announced during its 47th annual general meeting (AGM) late in August. The board also approved an increased authorised share capital from ₹15,000 crore to ₹50,000 crore. It was Rreliance's sixth bonus issue and the first since 2017.

Experts say the business growth plans of Reliance Industries will augur well for the stock. Addressing the company's 47th annual general meeting on August 29, Reliance Industries Chairman Mukesh Ambani said the company intends to double its value by the time it completes 50 years of functioning in 2027.

Chairman Ambani said Reliance Industries is firing up its five growth engines to double the group's size.

Mint gathered expert opinions to provide insights into the prospects of Reliance stock. Here’s what they had to say:

Seema Srivastava, Senior Equity Research Analyst at SMC Global Securities

The traditional petrochemical business of Reliance Industries has been growing stronger and stronger.

The falling oil prices are expected to benefit the company's margins as it would benefit directly from GRM (gross refining margins).

The company has forayed into the green business, and its other ventures, like Reliance Jio and Reliance Retail, have also started to contribute significantly to its balance sheet.

The recent telecom tariff hike will increase Jio's ARPU (average revenue per user) in upcoming quarters.

Rajesh Sinha, Senior Research Analyst at Bonanza Group

Reliance Industries (RIL) is in the spotlight following its recent AGM and the expected announcement of a 1:1 bonus share issue, which is scheduled to be discussed today. This will be RIL’s first bonus issue in seven years, the last being in 2017.

During the AGM, Chairman Mukesh Ambani outlined several strategic initiatives. He expressed confidence that RIL's revenues could double over the next three to four years, mainly driven by advancements in their digital and retail segments.

RIL is expanding its new energy business, which is expected to match the profitability of its traditional oil-to-chemicals (O2C) segment within 5-7 years. The new energy business is part of a broader strategy to achieve net-zero carbon emissions by 2035.

RIL is investing heavily in artificial intelligence and digital infrastructure, with plans to leverage AI across various business segments, including the launch of Jio Brain and new data centres.

RIL also focused on its rapid growth in the grocery sector and plans to enhance its retail presence, particularly in smaller towns. This is expected to contribute significantly to RIL's overall revenue growth.

"The long-term outlook for Reliance Industries is robust, led by strategic initiatives in new energy, technology, and retail expansion. We believe the upcoming decision on the bonus share issuance is likely to enhance market confidence in RIL further," said Sinha.

Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi

“Reliance's share price is looking bullish on the technical chart. If it closes above the ₹3,000 mark today, we can expect the Sensex heavyweight to touch ₹3,150 to ₹3,200 apiece soon,” said Dongre.

“Reliance shareholders are advised to hold the scrip with stop loss at ₹2,900 apiece. If the stock touches a new high, one can upgrade one trailing stop loss from ₹2,900 to ₹3,000 per share mark for ₹3,400 per share target. Fresh investors can also buy Reliance shares at the current market price of ₹3,200 per share target in the near term,” said Dongre.

KKunal V Parar, VP of technical research and Algo at Choice Broking

On the daily chart, the stock is currently trading above its 100-day moving average, indicating a positive short-term trend. Additionally, it is positioned near the lower band of a rising wedge pattern, suggesting the potential for a rebound.

On the weekly chart, the stock has solid support around the ₹2,840 level, which previously acted as strong resistance. This level now serves as a key support zone, reinforcing the possibility of a bounce.

"The daily momentum indicator, RSI, remains above the 50 mark, signalling positive market sentiment and strengthening the bullish outlook. Given the technical structure, we anticipate an upward move towards the ₹3,165–3,400 range, with a strict stop loss at ₹2,840," said Parar.

Ajit Mishra, SVP of research at Religare Broking

Mishra observed that Reliance stock has been trading within a tight range of ₹2,950-3,050 for the past month and a half, following a pullback from its all-time high.

"While further consolidation is likely, the overall bias remains positive as long as it holds above ₹2,950. A decisive breakout above ₹3,050 could signal the next leg of the rally, potentially taking it back to its record high of ₹3,200. Traders should adjust their strategies accordingly," said Mishra.

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Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.