Reliance stock jumps past key resistance level, analysts see 33% upside

According to Bansal, the stock has crossed the crucial Rs 1,234 level and was trading around Rs 1,252-1,253. He identified Rs 1,325 as the next important target from a trading perspective, citing the company's record profit and strong quarterly performance. From a longer-term perspective, Bansal sees the stock moving towards Rs 1,500, indicating a potential upside of 33 percent from the previous session's closing price.

Reliance stock was the top gainer on the Nifty and the biggest contributor to the benchmark index's gains. The rally was also supported by positive brokerage commentary and strong buying interest. Bansal said the company's oil-to-chemicals (O2C) business, which reported a 68 percent increase in EBITDA in the September quarter, boosted investor confidence. Bansal also highlighted the performance of Reliance's other businesses and the potential for value unlocking.

He pointed to Reliance's stake in Jio Platforms, whose market valuation is estimated at around Rs 13 lakh crore, as a potential source of further value creation for the parent company. He added that a potential stake sale or partial dilution in Reliance Retail could also unlock value for shareholders. Reliance has earlier unlocked value through the listing of Jio Financial Services, and similar initiatives involving its other businesses could provide further opportunities, he said to CNBC-AWAAZ.

Virat Jagad, Senior Technical Research Analyst at Bonanza, further noted Reliance Industries was showing a strong recovery, with a sharp bullish candle backed by significant trading volumes, indicating fresh buying interest. The stock is attempting to break above the descending channel resistance near Rs 1,255 and has moved above its 20-day and 50-day exponential moving averages (EMAs), he said. The Relative Strength Index (RSI) has also improved above 60, supporting positive momentum.

A sustained breakout could take the stock towards Rs 1,346, while Rs 1,250 remains a crucial support level, Jagad added. The rally took Reliance Industries' market capitalisation past Rs 17 lakh crore. The stock touched an intraday high of Rs 1,259, gaining 8.1 percent. It recorded its biggest single-day intraday gain since April 2020 and was the most actively traded stock on both the NSE and BSE.

Reliance Industries reported its strongest-ever quarterly financial performance for the July-September period, with record revenue, EBITDA and net profit. The performance was supported by growth in its oil-to-chemicals (O2C) business, digital services and retail operations.