Big blow to Mukesh Ambani as RIL shares fall 21% from 8-month record high, know reasons here

Shares of Mukesh Ambani-owned Reliance Industries LImited (RIL) have witnessed a significant decline of 21 per cent from their record high during the corresponding period. The shares of RIL hit their record high of Rs 1,608.95 on July 8, 2024. Around 14% or two-third of the correction in the RIL stock was registered in the last six months.

A market correction implies a decline in share value, compared against the recent highs. 

On Friday, RIL shares closed 0.62 per cent higher at Rs 1276.45 against the previous figure of Rs 1268.55. Notably, RIL stock has seen a loss of 12 per cent in a year. 

"Reliance has experienced a significant correction of over 20% from its peak of Rs 1608 within the last 7-8 months, and it has recently dipped slightly below the neckline of a multi-month breakout observed in December 2023. Currently, the stock is showing stability around the neckline zone of Rs 1250-1220, providing some support to the overall market. Based on historical trends, it is expected that the stock will regain momentum once it breaks above the resistance levels of Rs 1280-1300", said Osho Krishan, Senior Analyst - Technical & Derivatives, Angel One, as quoted by Business Today. 

The technical indicators have moved out of the oversold territory and sustained buying above this resistance could provide the necessary boost for the stock in the near future. As Reliance is a heavyweight counter, a gradual upward movement is anticipated, with key resistance levels around Rs 1320-1330, followed by Rs 1365 (200 DSMA). This presents an opportunity to accumulate shares from a medium to long-term perspective while continuing to monitor market developments regularly," he added.