Reliance Industries Share Price: Set for a Major Breakdown

Reliance Industries share price has come under intense pressure in the past few days. The stock is trading at 2,450 INR, which is about 15% below the highest point this year. As a result, Mukesh Ambani’s net worth has dropped by over $4 billion this year. He is now valued at over $85 billion, which is about $29 billion below that of Gautam Adani.

Reliance in the spotlight

Reliance Industries has been in the spotlight in the past few weeks. First, Mukesh Ambani continued his succession plan by giving key roles to his twin children. His goal is to ensure that there will be a smooth transition, unlike what happened between him and Anil.

Second, Reliance Industries published strong results as its profit rose by 41% to ₹19,443 crore. This increase was lower than what analysts were expecting. Its revenue came in at over ₹2.23 lakh crore, which was about 54% above the same period in 2021. Operating profit rose by 45.8%. Analysts believe that the company’s growth will slow dramatically.

Third, the company is cheering the upcoming commissioning of its MJ gas development in eastern India. The project is being built through a joint venture with BP, the London-listed company. Once commissioned, the project will be able to produce about 1 billion cubic feet a day, which is about 15% of India’s consumption.

Reliance Industries share price forecast.

The daily chart shows that the Reliance Industries share price formed a double-top pattern at 2,811. In price action analysis, this pattern is usually a bearish sign. In addition, the stock is slightly below the 25-day and 50-day moving averages, while the Relative Strength Index (RSI) is slightly below 50.

Therefore, because of the double-top pattern, there is a likelihood that the shares will soon have a major bearish breakout. If this happens, the stock will likely have a bearish breakout as sellers target the support at 2,200. However, a move above the resistance at 2,536 will invalidate the bearish view.

Reliance Industries Share Price