Reliance share price rises over 2% due to THIS wave of acquisitions. More upside potential possible?

Reliance share price: Shares of oil, telecom and retail major Reliance Industries rose over 2 percent in intraday trade on the BSE on Friday, November 29, a day after the company said its wholly-owned subsidiary acquired a 21 percent stake Percent acquired US-based Wavetech Helium, Inc. for $12 million. According to the company, the acquisition is part of its strategy to expand its exploration and production business in the area of ​​low-carbon solutions.

The stock opened at ₹1,280 compared to the previous close of ₹1,271.35 and rose by 2.2 percent to the level of ₹1,299.30 on the BSE. At around 1:40 p.m., the shares were up 1.97 percent ₹1,296.45.

“Reliance Finance and Investments USA LLC, a wholly owned subsidiary of the Company, entered into a stock purchase agreement with Wavetech Helium, Inc. on November 27, 2024, subscribing to a 21 percent stake in Wavetech Helium for a total purchase price of $12 million,” said the company in a stock market announcement on November 28th.

“Wavetech Helium was incorporated in the United States on July 2, 2021 and began commercial operations in 2024. “It is a U.S. helium gas exploration and production company engaged in the acquisition, exploration and development of properties for the production of helium gas from underground reservoirs,” the company said.

Reliance share price performance

Shares of India’s largest company by market capitalization posted slight gains last year. While the Sensex has risen around 20 percent, Reliance shares have gained just over 6 percent by the close of trading on November 28.

On a monthly basis, the stock has been in the red since September. In September it fell by 2 percent and in October by 10 percent. The stock has fallen about 3 percent so far in November.

It hit a 52-week high of ₹1,608.95 on July 8 this year and a 52-week low of ₹1,185.63 on November 30 last year.

More upside potential possible?

The stock posted strong gains of around 2 percent this week amid renewed escalation in tensions between Russia and Ukraine, which is expected to benefit oil-producing companies including Reliance.

Experts believe that the rising price of crude oil due to geopolitical tensions should enable margin advantages for Reliance Industries.

Recent foreign brokerage activity CLSA maintained its “Outperform” rating on Reliance shares with a price target of ₹1,650, it said the company’s new $40 billion energy business was being ignored by the market.

Reliance aims to build a fully integrated 20 GW solar gigafactory by 2026-2027 and start cell-to-module production in the next three to four months.

According to CLSA estimates, the solar business could generate earnings before interest, taxes, depreciation and amortization (EBITDA) of $1.7 billion and be valued at over $30 billion over the next four to five years, at a discount to the Replacement cost corresponds to valuation of recently listed Indian solar PV manufacturers.

Technical experts also see the stock positively in the short term.

According to Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Stock and Stock BrokerTraders can consider taking long positions in the stock ₹The range is between 1,265 and 1,290, placing a protective stop loss below ₹1,199 to manage risks. “The expected upside target for this trade is around ₹1,400,” Patel said.

Patel pointed out that Reliance has been following a textbook 5-wave Elliott wave structure on the daily chart since March 2023. This impulsive rally reached its decisive conclusion in July 2024, marking the end of the fifth wave and initiating a corrective ABC phase.

He said such corrections are typical after the completion of a five-wave cycle and often go back to significant Fibonacci levels.

“Currently the stock has reversed ₹1,220-1,240 area, which coincides with the 61.8 percent Fibonacci retracement level of the entire five-wave structure. This level is important because it typically serves as strong support during correction phases and indicates the potential for base formation. “Furthermore, these levels coincide with the completion of a bullish crab harmonic pattern, further strengthening the case for a reversal,” said Patel.

Pravesh Gour, Senior Technical Analyst at Swastika Investmartunderlined that the first upward resistance for the share had been reached ₹1,300. If this level is broken, the next resistance zone lies ahead ₹1,400, corresponding to the 100-day exponential moving average (EMA). There is a strong support level on the downside ₹1,220.

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