Reliance Industries reported a decline in profits for the July-September quarter, mainly due to weaker performance in its core oil-to-chemicals (O2C) segment and retail business. Investors are expected to keep a close eye on the stock when it opens on Tuesday, October 14, as the quarterly results could influence its movement.
According to Kushal Gandhi, a technical analyst at StoxBox, Reliance’s share price is currently in a consolidation phase, fluctuating within a 15% range without a clear trend. He pointed out that the fair value area is between ₹2,810 and ₹2,705, which acts as a demand zone. The stock is trading below its 200-day moving average, so it’s crucial to maintain this support zone to avoid further losses.
Gandhi advises investors to hold off on buying the stock until it confirms reclaiming its 200-day moving average, which is currently resistance at around ₹2,912. He emphasized caution due to the stock’s relatively weak performance compared to the Nifty50 index and other unfavorable technical indicators.
Reliance Industries Q2 Results Highlights:
- Consolidated profit fell to ₹16,563 crore, down 4.7% year-on-year.
- Consolidated revenue from operations remained steady at ₹2,35,481 crore.
- Consolidated EBITDA was ₹43,934 crore, a 2% increase year-on-year, with an EBITDA margin of 17%, slightly down from 17.5% last year.
- Total debt rose to ₹3,36,337 crore from ₹2,95,687 crore at the end of Q2 FY24.
Mukesh Ambani, Chairman of Reliance Industries, stated that strong growth in digital services and upstream business helped offset the poor performance in the O2C segment, which faced challenges due to unfavorable global demand and supply dynamics.
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