Reliance Industries Shares Gain 7% In 3 Days; More Upside Seen

Reliance Industries shares have gained from Tuesday's closing price of Rs. 2632.65 per share to Rs. 2817.35 per share. This implies gains of over 7%. Meanwhile, the index Nifty is up by 0.38% and is at 16691.8

The stock is trading above its 5, 10, 20,50,100 and 200 simple moving average.

On the sharp gains, the stock also topped m-cap of Rs. 19 lakh crore.

The oil to telecom conglomerate of late has been on an acquisition spree and its retail licensing arm-Reliance Brands is said to acquire stake in Italy-based Plastic Legno's toy manufacturing business in India - Dream Plast.

Earlier the Reuters report said the company will buy stake in dozens of small grocery as well as non-food business to set up $6.5 billion consumer goods to compete with giants like Unilever.

For Reliance which has taken strong support at 200-day SMA and bounced back sharply. The target price for the stock is Rs. 3123. As per the technicals, the stock is sustaining at a 4-week high with the formation of higher top, higher bottom on the daily as well as weekly charts. There is witnessed strong volume back up at every up move, which shows bullish strength.

Also, the RSI plotted on all time frames sustains above 55 with a higher top higher bottom pattern, indicating strong bullish momentum in prices. The stop loss though recommended is Rs. 2590 per share.