Reliance Industries (NSE: RELIANCE) share price has been rallying since the release of its Q1 earnings report. The latest analysis shows that the bears are finally gaining momentum after a month-long rally. The bulls need to hold a key level on the chart.
On Wednesday, the Indian stock market showed a negative sentiment as the Nifty 50 and BSE Sensex both indices turned red. Consequently, Reliance shares also plummeted by 1.99% during today’s trading session. The stock of the telecom giant is currently retesting a major supply zone.
Reliance Industries Tanked As Investors Awaited GDP Data
The Reliance share price dropped on Wednesday as the markets awaited Indian GDP data. The shares closed the third straight day in the red as the uncertainty prevailed. However, the GDP data came much stronger than expected.
The latest data showed that the Indian economy grew 7.2% last year. This was higher than the survey estimate of 7%. The data may cause a bounce in the reliance share price tomorrow. A possible reason behind the ongoing rally in Reliance Industries share price could be the recent earnings report. The company’s earnings beat the estimates by 7.93%. However, its revenue still fell by 6.43% and stayed at INR 146.35 billion.
Reliance Industries Share Price Must Hold 2450
The latest analysis of NSE: RELIANCE suggests that the stock might have a correction soon. This is due to the fact that the RSI and MFI are showing bearish divergences on the daily chart. This is The bulls need to hold the 2,440-2,480 region, which is marked red on the following chart.
Reliance Industries share price forecast will become very bearish if the price breaks below this region. This can send the shares to their next support that lies within the 2,300-2,320 range. The broader market sentiment and RBI decision will play a key role in the Reliance stock’s valuation.
I’ll keep posting my updated outlook on Reliance and other assets in my free Telegram group, which you’re welcome to join.