Reliance Industries looks poised to resume bearish trend

KONSKIE, POLAND - June 29, 2019: Reliance Jio Infocomm Limited Indian mobile network operator logo displayed on mobile phone

The Reliance industries share price is up by less than  0.1 per cent in the closing hour of today’s trading session after opening with a huge gap-down of more than 1 per cent. The slow start to the week follows last week’s aggressive bearish trend that saw the company lose 4 per cent of its value. 

Is it the Right Time to Buy Reliance Industries Share?

Reliance Industries, India’s largest single listed company by market capitalisation, is expanding its retail empire in the country. The company plans to open seven stores per day, with acquisitions being used to accelerate growth. The retail unit of billionaire Mukesh Ambani’s oil-to-data conglomerate is aiming to dominate the $800bn Indian retail market, with 16,000 stores across the country and 17% of revenues coming from online purchases. Ambani has said he wants to spin out Reliance Retail and the Jio mobile network and allocate their leadership to his children.

The company has been expanding its retail business, with $3.6bn invested in the last financial year. It is also looking to acquire German wholesaler Metro’s Indian business and has announced its intention to buy Future Group’s retail, wholesale, logistics and warehousing units. These moves have placed Reliance in a strong position to dominate India’s retail sector, which is still largely made up of small, independent shops.

In addition to its retail expansion, Reliance Industries has also been reducing its dependence on oil-refining by diversifying into telecommunications and technology. Chairman Mukesh Ambani has unveiled investment plans totalling INR 2.75tn ($37bn) and outlined a succession plan to double the group’s value by 2027. These investments include the rollout of 5G services across India and accelerated investments in its new energy business.

Overall, recent financial reports suggest that Reliance Industries is making significant strides in expanding its retail presence in India while also diversifying its business and positioning itself for future growth.

On the technical side of things, Reliance industries’ price action is looking poised to resume the bearish trend in the coming sessions. We are highly likely to see the company start trading below 2,500 INR in the coming weeks. 

Reliance Daily Chart

reliance industries share price