Reliance Industries Stock Drops 3.6%, Falls Below Key Support Level
This decline marks a 28% drop from its peak and has pushed the stock below its 200-week moving average (WMA)—a rare event seen last during the March 2020 COVID-19 market crash.
Mumbai: Shares of Reliance Industries Ltd (RIL) tumbled 3.6% on Monday, reaching a new low of ₹1,156 on the BSE, as foreign institutional investors (FIIs) continued offloading their holdings.
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This decline marks a 28% drop from its peak and has pushed the stock below its 200-week moving average (WMA)—a rare event seen last during the March 2020 COVID-19 market crash.
Market Volatility and FIIs Selling Pressure
The drop in RIL’s stock price comes amid broader market volatility, with global investors reducing exposure to emerging markets due to macroeconomic uncertainties. The breach of the 200-WMA is considered a significant technical indicator, signaling possible further downside unless buyers’ step in to stabilize the stock.
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Analysts Maintain Positive Outlook
Despite the short-term weakness, analysts remain bullish on RIL’s long-term prospects. According to Trendlyne data, out of 38 analysts covering the stock, 33 have maintained a ‘Buy’ rating, while only three have given a ‘Sell’ recommendation.
Market experts emphasize that Reliance’s fundamentals remain strong, given its diversified business portfolio across energy, telecom, and retail. The stock’s average target price signals a potential upside of 36%, with the highest target reaching ₹1,827—a substantial premium over current levels.
Investor Sentiment and Key Triggers Ahead
Market watchers are closely monitoring RIL’s price action around the 200-WMA, as historically, the stock has bounced back strongly after similar declines. The March 2020 breakdown was followed by a sharp recovery, driven by the company’s digital and retail businesses.
While FIIs’ selling pressure continues to weigh on the stock, domestic institutional investors (DIIs) and retail investors may step in at lower levels, betting on RIL’s long-term growth potential.
Traders and investors will be watching the upcoming quarterly earnings and management commentary to gauge RIL’s growth trajectory. Any positive triggers, such as strategic investments or operational improvements, could provide much-needed support for the stock.
Conclusion
The recent fall below the 200-WMA is a key technical event for Reliance Industries, but analysts remain confident in the stock’s recovery potential. With strong buy-side recommendations and a notable upside potential, investors may see this weakness as an accumulation opportunity. However, short-term market dynamics and FII trading patterns will remain key factors in determining RIL’s trajectory in the coming weeks.
