Reliance Infrastructure stocks: Shares of Reliance Infrastructure Ltd saw a sharp uptick in Monday’s trading session, surging 14.55 percent to reach a high of Rs 192.15. The stock was last observed trading 9.15 percent higher at Rs 183.10. Despite this rise, the scrip has declined by 13.08 percent on a year-to-date (YTD) basis.
Recently, Reliance EV Pvt Ltd was incorporated as a wholly-owned subsidiary of Reliance Velocity Ltd, a subsidiary of Reliance Infra. On June 8, 2024, the Ministry of Corporate Affairs provided the certificate of incorporation.
On the technical front, support for the stock can be seen in the Rs 170-160 range. For additional upside, there must be a clear breach over Rs 200.
Osho Krishan, Senior Research Analyst – Technical & Derivatives at Angel One, commented, The stock was in a corrective phase but has seen decent traction in the last couple of sessions. The Rs 200 level will be crucial to watch, as a decisive breach would trigger a trend reversal. On the lower end, Rs 170 should provide support, with sacrosanct support around Rs 160-155.
Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, suggested, “Investors can consider booking profits at current levels and buying again at Rs 160 for a target of Rs 190. Keep a stop loss placed at Rs 145.
Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers, noted that support is at Rs 170 and resistance at Rs 195. A decisive close above Rs 195 may trigger a further upside to Rs 226. For a month, the anticipated trading range is between Rs 160 and Rs 226. -Reliance Infrastructure stocks
The stock was trading higher than the 5-day, 10-day, 20-day, and 30-day simple moving averages (SMAs), but lower than the 50-day, 100-day, 150-day, and 200-day SMAs. The 14-day relative strength index (RSI) was at 49.17, where a level below 30 indicates oversold conditions and a value above 70 suggests overbought conditions.
The company’s stock has a negative price-to-earnings (P/E) ratio of 3.44 and a price-to-book (P/B) value of 1.05. Its earnings per share (EPS) are (-)48.73, with a return on equity of (-)30.60.
A few months ago, Reliance Infra shares experienced a correction after the Supreme Court of India overturned a previous ruling that required the Delhi Metro Rail Corporation (DMRC) to pay an arbitration award of approximately Rs 8,000 crore to the firm’s subsidiary, Delhi Airport Metro Express Pvt Ltd (DAMEPL).
Reliance Infra issued a clarification to BSE, stating that the order does not impose any liability on the company.
As of March 2024, the promoters held a 16.50 percent stake in the company.
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