• By Vaamanaa Sethi
  • Wed, 20 Sep 2023 05:08 PM (IST)
  • Source:JND

Shares of Reliance Industries (RIL) plunged over 3% to two-month low of Rs 2,355 per share in early trade on September 20. The shares of index heavyweight also dragged the benchmark Nifty 50 below the 20,000 points.

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RIL shares were trading among the worst hit in the Nifty 50 pack, were trading 2% lower at Rs 2,394.75 per share. The stock closed 2.29% lower at Rs 2,380 per piece on NSE.

RIL share price continued its losing streak for the fourth consecutive session today. So far in the last four sessions, RIL share price has lost over 2%.

This happened after a block deal involving 1.9 crore shares or 0.3% equity also took place on the exchanges, worth around Rs 4,563 crore, a day earlier. According to Moneycontrol report, the decline in the stock price was initiated by substantial trading volumes, with two crore shares being exchanged on the exchanges up to this point, compared to the one-month daily average of 73 lakh shares.

However, despite the fall in the stock price, brokerage firms remain positive on the Mukesh Ambani-led conglomerate’s long term growth prospects. 

Jefferies, a foreign brokerage, believes that the recent stock correction of over 6 percent in the past month has made valuations more attractive. The firm also anticipates a reduction in capital intensity for RIL's telecom and retail divisions by FY25, which is expected to result in robust free cash flow for the conglomerate.

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“If the closing price falls within the range of 2,410 to 2,430, it would suggest the possibility of today's decline being an extreme panic low, which could pave the way for an upward trend in the near future. On the contrary, if prices remain below 2,370, it's likely that we might see further corrections in the short term. Traders should closely monitor these levels at the time of closing and make their decisions accordingly," Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One, was quoted as saying by Livemint.