Shares of Reliance Industries fell for the eighth straight session in Monday's trade. The counter fell below the Rs 2,200 mark to hit a new one-year low today. The stock fell by 1.78 per cent to near a day low of Rs 2,183. 60 over a previous close of Rs 2,223. A total of 89,000 shares on the BSE changed hands today, which was lower than the two-week average volume of 2.90 lakh shares. Turnover on the counter stood at Rs 19.64 crore, with a market capitalisation m-cap of Rs 14,81, 100.75 crore. The scrip has declined by around 15 per cent this year.
Analysts remained largely 'bearish' on the counter. One analyst suggested Reliance would bounce back in the long run, while another suggested that there would be no fresh longs at current levels.
Reliance Industries shares are at lower levels, which is a good buy, as there is no problem with the stock. A long-time buyer can be a good opportunity to enter if a correction is made. In the long run, reliance will bounce back, said AK Prabhakar, head of research at IDBI Capital Markets.
If Reliance can maintain the Rs 2,000 level, we can expect a good bounce up to Rs 2,350 -- 2,500 levels, said Ameya Ranadive CMT, Equity Research Analyst at Choice Broking.
RIL looks bearish but oversold on the daily charts. Pavitraa Shetty, a trader from Tips 2 said that the strong resistance will be at Rs 2,304.
Fresh longs are not recommended at the current market price, said Jigar S Patel, Senior Manager Technical Research Analyst at Anand Rathi Shares and Stock Brokers.
Kotak Institutional Equities has assigned a 'Buy' rating for Reliance, while pegging it at a fair value of Rs 3,000 over the next 12 months.
The stock was last seen trading lower than the 50 day, 20 day, 50 day, 100 day and 200 day moving averages. The RSI, the counter's 14 day relative strength index, came at 28.65. A level below 30 is defined as oversold, while a value above 70 is considered overbought. The company's stock has a price-to- equity P E ratio of 36.26.
The scrip has an average target price of Rs 2,896, Trendlyne data shows a potential upside of 32.08 per cent. It has a one-year beta of 1.10, indicating high volatility on the counter.
Indian equity indices fell sharply in late morning deals, dragged by banks, financials, automobile, technology and metal stocks.