Reliance Infrastructure Ltd witnessed a significant surge in its share price, jumping 10.75% in Wednesday’s trade amid heavy trading volumes. The stock reached a day high of Rs 157.15, up from its previous close of Rs 141.90. The trading activity was notable, with approximately 34.20 lakh shares changing hands on the BSE, far exceeding the two-week average volume of 4.94 lakh shares. The turnover on the counter amounted to Rs 49.72 crore, leading to a market capitalization (m-cap) of Rs 5,398.22 crore.
Despite today’s strong performance, the stock remains down 21.95% from its 52-week high of Rs 201.35, recorded on September 2, 2022. However, it has made a remarkable gain of 55.98% from its one-year low price of Rs 100.75, observed on July 19 last year.
The technical charts for Reliance Infrastructure indicate that support levels can be observed at Rs 147, followed by Rs 143. On the other hand, the stock faces resistance around Rs 160.
According to Vaishali Parekh, Vice-President – Technical Research at Prabhudas Lilladher, the stock has shown considerable momentum in the last two sessions, rising from Rs 134 to the peak of Rs 157. It currently faces resistance near the Rs 158 level, and if it manages to surpass this mark, it could trigger further upward movement towards the next expected target of Rs 168 in the coming days. The stock’s near-term support is seen at Rs 147 from its current level.
AR Ramachandran from Tips2trades also expressed bullish sentiments, highlighting strong resistance at Rs 158. A daily close above this resistance could lead to targets of Rs 175 in the near term, while support is likely to be around Rs 143.
However, Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers, warned that the stock is trading near its resistance zone of Rs 160, which could be a matter of concern. He suggested that fresh long positions would only be triggered if there is a daily close above Rs 160.
Milan Sharma, Founder at 35North Ventures, emphasized that the risk-reward ratio appears favorable, making it an attractive long-term investment. He recommended that long-term investors hold the stock, projecting a target of Rs 220 over the next 12 months.
The 14-day relative strength index (RSI) for the stock stood at 54.20, suggesting that it is neither overbought nor oversold. Reliance Infrastructure’s stock has a negative price-to-equity (P/E) ratio of 1.56, while the price-to-book (P/B) value is 0.50.
As Indian equity benchmarks continue to scale fresh all-time highs, the positive momentum in Reliance Infrastructure’s shares reflects investors’ optimism in the company’s growth prospects.
