Mukesh Ambani readies succession plan; RIL stock may soar 24%, hit new high

According to the technical charts, the range of Rs 2,350 - Rs 2,150 on the stock is seen as a good area for bottom fishing.

As part of the succession plan in one of Asia's largest business family and oil-to-telecom conglomerate Reliance Industries, the chairman and managing director of company, Mukesh Ambani on Tuesday handed over the reins of its telecom subsiary, Reliance Jio Infocomm, to his 30-year old son Akash Ambani. 

The transition has come ahead of an anticipated initial public offering (IPO) of Jio Platforms.

Akash an economics graduate from Brown University in the US, and has been involved with Jio since its inception and is also a board member of Jio Platforms. With over 410 million subscribers, Jio is the largest mobile service provider in India. READ MORE

In a follow-up development, Akash's twin-sister Isha Ambani seems all-set to be named chairman of the Reliance’s retail unit - Reliance Retail. Isha is an alumnus of Yale University.

Given this backdrop, let’s consider the technical outlook on Reliance Industries going ahead:- 

Reliance Industries Ltd (RELIANCE)

Likely target: Rs 3,000 and Rs 3,200

Upside potential:  16% to 24%

Shares of Reliance Industries trade 10 per cent lower from the historic peak of Rs 2,856 touched in late April 2022. When compared with the benchmark indices, the BSE Sensex and Nifty 50, have plunged over 16 per cent each. 

The stock has been gradually sailing along the 50-weekly moving average (WMA), since May 2020. The 200-WMA is currently placed at Rs 2,464 level.  And as long as this support average is not violated with an aggressive sell-off, the stock is likely to see accumulation on corrective moves, according to the weekly chart set-up.

The broader outlook too highlights bullishness, foreseeing higher targets (new all-time high) of Rs 3,000 and Rs 3,200.  Whereas, the range of Rs 2,350 to Rs 2,150 continues to remain the bottom fishing area for the stock. 

A decisive close over the Rs 2,800 level could trigger an addition of more longs as it leads to the next breakout, according to the weekly chart.  CLICK HERE FOR THE CHART