Reliance Industries: The stock of Reliance Industries (RIL) registered a rise of more than 14 per cent during the last one month, compared to the gain of 3 per cent in the benchmark Sensex. The stock is nearing its all-time high of Rs 2,750 and is about 5 per cent away from that level. According to analysts, this heavyweight stock is seeing strength on the back of increase in Singapore Gross Refining Margin (GRM).
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According to a Livemint report, Santosh Meena, Head (Research) Swastika Investmart said, “Reliance Industries’ petchem business is performing well due to the jump in oil and gas prices. On the other hand, Singapore GRM is at its all-time high, due to which the stock is seeing good growth. Her telecom business is immune to geopolitical tension and inflation, while she is making new partnerships for her retail business. The company continues to expand its footprint in the renewable energy business, opening up new opportunities.”
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Shares can go up to Rs 3,000
Meena said, from technical point of view, the stock formed a strong base at Rs 2,250 level and then came a smart rally. There is an immediate resistance area on the upside at Rs 2,700-2,750, while it is likely to move further towards Rs 3,000. On the downside, there is immediate and strong support at Rs.2,500.
Reliance Retail Ventures Ltd. (RRVL) recently invested Rs 950 crore in Purple Panda Fashions Pvt. Ltd. Ltd., which owns women’s innerwear and lounge wear brand Clovia.
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Retail business will be strong, ARPU will increase
Ravi Singhal, GCL Securities said, “Following the recent rally in crude oil prices, RIL’s petro-chemical business is expected to benefit from margin on its unsold petrol and diesel inventories. In addition, it has recently acquired a major stake in Clovia, which is expected to boost its retail business in the coming quarters. There is talk of a possible increase in the user’s ARPU on the average revenue of the company, which is good news for the shares of RIL.
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