The Reliance Industries share price made it two days of gains after closing 1.05% higher this Tuesday. This uptick follows Monday’s 1.55% push into green territory, as investors applauded the company’s move to acquire a majority stake in a US-based tech firm.
The Indian conglomerate has agreed to buy a 79.4% stake in US-based solar energy software tools SenseHawk for $32million. One of the areas that the funds will be deployed is research and development. Reliance Industries/SenseHawk will also see to the rollout of new products and finance future growth projects from the payment. The deal is expected to be completed at year’s end, subject to regulatory approval.
This acquisition comes just days after Reliance Industries announced it would invest Rs 75,000 crores (about 939.22 million US dollars) into its oil to chemical business over the next five years to expand its vertical polyester and vinyl production and also to build India’s first carbon fibre plant. The company also projects that its share of the domestic gas production market would rise to 30%.
The move comes as Reliance Industries seeks to continue the rally that kicked off on 1 July, adding nearly 300 Rupees to its share price. The rally stalled with the formation of a double top on 17/24 August. The Reliance Industries share price remains far below its 2022 highs at 2856 Rupees.
Reliance Industries Share Price Forecast
The 2609.10 resistance (11 August and 1 September high) is currently being tested and is the barrier to beat. A break above this level clears the path for the bulls to attain the 2676.05 resistance, formed by previous highs of 30 May and 17 August. A continued advance makes the 2745.70 price mark available, while 2799.25 (2 May and 9 June highs) form an additional harvest point for the bulls.
On the flip side, rejection at the 2609.10 resistance makes the 2507.00 support (20 May and 1 August lows) the next downside target. A breakdown of this pivot opens the door toward 2440.40 (13/26 July highs in role reversal) before additional downside targets make it into the picture at 2368.10 (1 July low) and 2306.55 (23 November 2021 and 25 January 2022 lows).
Reliance Industries: Daily Chart
