Sharemasterindia.com: Reliance Industries shares rallied for a sixth consecutive session on Friday, rising over 1 per cent in early trade. Over the last five sessions, RIL shares have gained 11 per cent and the stock in now trading comfortably above its 200 day moving average, considered to be a strong support.
RIL hit an intraday high of Rs 995.75 on Friday, nearing the triple-digit mark last witnessed on November 14, 2014.
Analysts have attributed the recent gains in RIL to optimism around the company's 4G telecom services that is likely to roll out under the Reliance Jio brand in December.
According to a report in Mint, Reliance Jio has also got a provisional licence to operate as a pan-India multi-system operator (MSO), taking it a step closer to becoming a nationwide distributor of television channels. Reliance Jio will compete with Hathway Cable & Datacom, Digi Cable Network and DEN Satellite Network.
RIL's refining business, which is the biggest contributor to the company's revenue, is also looking up. According to analysts, RIL's refining margins are likely to be strong at around $9 per barrel in the three months ending June 2015.
Meanwhile, widely tracked technical analyst Laurance Balanco of CLSA said Reliance Industries has broken out of the January-June head and shoulders basing pattern which supports a minimum upside target of Rs 1,170.
In technical analysis, a head and shoulder pattern suggests a reversal of trend. RIL has underperformed the broader markets for many years now.
The gains in RIL have had a major contribution in the recent up move seen in broader markets, analysts say. RIL is one of the most influential Nifty stocks in terms of weightage.
Ashish Chaturmohta of Fortune Financials told NDTV that there is a very strong build-up of long positions in RIL and any dip towards Rs 940-Rs 950 will attract buyers. RIL shares can move another 10 per cent from the current levels, he added.
As of 09.45 a.m., RIL shares traded 0.84 per cent higher at Rs 987.30, outperforming the broader Nifty, which was up 0.4 per cent at 8,208.
