How to trade in Reliance Industries post Q3 results? Check key levels

After evaluating the RIL shares on all three time frames; short-term, medium-term and long-term, it appears to be positive as long as it shields the support of Rs 2,200 levels.

Shares of Mukesh Ambani owned Reliance Industries were in the spotlight on Monday after the company reported it Q3FY23 results on Friday after market close. While there is a growth in revenue in the quarter ended December, the net profit declines 15% compared to the last year quarter. 

It reported total revenue of Rs 2.20 lakh crore, a rise of 15 per cent compare to the Rs 1.91 lakh crore during the same quarter last year. Net profit declined to Rs 15,792 crore from Rs 18,549 of the previous year. 

Reliance Industries posted a beat on EBITA, which stood at Rs 38,460 crore, rose 13.5 per cent year on year. Its subsidiary Reliance Jio reported a jump of 28 per cent in net profit to Rs 4,638 crore and a 19 per cent in revenue to Rs 22,998 year on year. 

The share price performance was significantly better in Q3FY22 than in Q3FY23. It rose 19 per cent compare to 7 per cent in the latter year. All-time high of the stock is at Rs 2,847 recorded in the April 2022 and it has not staged well since then.

On a broad perspective, the stock has gone sideways since late 2021 undergoing bullish accumulation near Rs 2,200 levels and witnessing selling pressure at Rs 2,800-mark. Such a long consolidation when lead to a breakout, either side move could garner sharp rallies. 

The medium-term trend is embracing the support of 100-weekly moving average (DMA), currently placed at Rs 2,393-mark. The stock trades over this level since April 2020, with sentiment uninterruptedly experiencing an upward bias. Until this mark is shielded, the trend may continue to top higher highs. 

Technically, the immediate trend signals a bearish formation of “Head and Shoulder”, with breakdown mark at Rs 2,440. If the stock slips under this mark and fails to show any recovery, then the trend could see a move in the direction of Rs 2,200 levels. On the flip side, if the stock surpasses the immediate hurdle of Rs 2,500-mark, with decisive chart structure, the positive bias could propel Reliance Industries shares towards Rs 2,600 and Rs 2,700. 

Thus, after evaluating the stock on all three time frames; short-term, medium-term and long-term, the stock appears to be positive as long as it shields the support of Rs 2,200 levels. Hold the stock with this support and when Rs 2,700 is taken out on the upside, positions can be added for a bigger up move. CLICK HERE FOR THE CHART