Reliance’s 12% Surge Signals Breakout. Can the Stock Scale a New Peak?

A gap-up opening, followed by a breakout above major falling trendlines and short- and medium-term moving averages, added to the bullish signal. "Reliance has witnessed a double-bottom neckline breakout on the daily chart, indicating a potential bullish reversal," said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities. The stock opened 5.42 percent higher at Rs 1,228.10, against its previous close of Rs 1,164.90.

After trading in a range through much of the afternoon, it gathered pace in the final hour to finish at Rs 1,300. The opening gap remained unfilled, while the day's long bullish candle pointed to strong buying interest. The rally also marked a potential break from the stock's extended consolidation, which had persisted since the start of the calendar year. A double-bottom formation last week, followed by Monday's sharp move, has strengthened the case for a trend reversal, technical analysts say.

Analysts see room for further gains According to Shah’s reading, the stock has also moved above two key downward-sloping resistance lines — one connecting the highs of May 6 and September 4, and another linking the January 5 and September 4 peaks. Momentum indicators have turned more favourable. The Relative Strength Index (RSI) has risen sharply, while the positive directional indicator (DI+) has crossed above the negative directional indicator (DI-) on the Average Directional Index (ADX), suggesting that buying pressure is strengthening, he observed.

Shah sees the Rs 1,150–1,160 band as an important support zone, after the stock found support there twice on the weekly chart. A sustained move above current levels could take the stock towards Rs 1,310–1,320, followed by Rs 1,380 over the medium term, he said. The latter is the measured-move target of the double-bottom pattern and also coincides with the stock's 200-day exponential moving average (EMA).

Shah has a long-term target of Rs 1,550. Beyond that, he expects Reliance to move past its previous all-time high of Rs 1,611.80, recorded in January 2026. Gaurav Bissa, SVP – Equity Research at InCred Capital Wealth Portfolio Managers, also sees the potential for a stronger recovery. He said the stock had rebounded after a positive divergence in the daily RSI. He had identified falling-wedge resistance near Rs 1,276 as a key level to watch; Monday's close at Rs 1,300 took the stock above that level.

On the monthly charts, Bissa says, Reliance has rebounded from Ichimoku support and is approaching its 50-month EMA, Bissa said. A sustained close above the moving average could open the way for fresh lifetime highs. Bissa recommends buying the stock with a stop-loss of Rs 1,140 and a target of Rs 1,650. The medium-term picture, however, still has some technical hurdles. Reliance has rebounded from the support of a two-year channel pattern, which could limit downside, but it continues to trade below the Ichimoku cloud.

That could constrain its near-term advance, Bissa said. He has set a medium-term target of Rs 1,380. An earnings-led rally Reliance’s surge on Monday followed the company’s September-quarter results, announced on October 30, which delivered record quarterly revenue, EBITDA and net profit. The performance was led by Jio Platforms and the oil-to-chemicals (O2C) business. The company reported a record net profit of Rs 29,550 crore, up 33.8 percent from a year earlier.

Revenue rose 27.8 percent to an all-time high of Rs 3.62 lakh crore, while EBITDA increased 23.9 percent to a record Rs 62,409 crore. The sharp rally has put the focus on whether the earnings-led move can sustain and translate into a broader trend reversal. For now, the breakout has improved the technical outlook, with analysts watching whether the stock can hold above the levels it crossed on Monday.