Reliance Industries may be emerging from a prolonged period of consolidation, with a sharp post-earnings rally on November 2 taking the stock above key technical resistance levels and prompting analysts to flag the possibility of a sustained recovery.
The stock surged 11.6 percent to close at Rs 1,300 on the National Stock Exchange, its highest closing level since September 7. The rally, its biggest single-day gain in the current decade, came with the highest trading volumes since September 2020. 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.