RIIL (Reliance Industrial Infrastructure Limited) witnessed a sharp surge in its stock price, climbing 17% in intraday trade today. Despite mixed financial results for the September 2024 quarter (Q2 FY25), the stock exhibited strong bullish momentum on technical charts, capturing the attention of traders and analysts alike.

Financial Performance in Q2 FY25

The company reported a consolidated net profit of ₹3.12 crore, reflecting a marginal decline of 1.89% compared to ₹3.18 crore in the year-ago period. Additionally, total income fell by 11.90% to ₹18.37 crore, as against ₹20.85 crore in Q2 FY24. The dip was primarily attributed to lower utilisation of infrastructure assets.

Technical Setup: Bullish Signs

On the technical front, RIIL shares demonstrated a bullish trend, trading above several short-term moving averages:

• 5-day, 10-day, 20-day, 30-day, and 50-day SMAs.

However, the stock remained below longer-term averages such as the 100-day, 150-day, and 200-day SMAs.

• Immediate resistance: ₹1,220-1,225 range.
• Key support: ₹1,058 level.

Osho Krishan, Senior Research Analyst at Angel One, emphasized, "A decisive breakthrough above ₹1,220 could dictate the next leg of the countertrend."

SEBI-registered research analyst AR Ramachandran noted, "The stock is bullish on daily charts with strong support at ₹1,058 and resistance near ₹1,225 in the short term."

The 14-day RSI (Relative Strength Index) stood at 60.51, suggesting neutral-to-bullish momentum. A level below 30 indicates oversold conditions, while above 70 reflects overbought levels.

Trading Activity and Valuation

The stock witnessed heavy trading volume on the BSE, with approximately 94,000 shares changing hands, significantly higher than the two-week average of 11,000 shares.

• Turnover: ₹10.93 crore.
• Market Capitalisation (m-cap): ₹1,790.48 crore.

The company’s valuation metrics include:

• P/E Ratio: 149.23.
• P/B Value: 3.63.
• EPS: ₹6.91.
• Return on Equity: 2.43%.

About RIIL

RIIL, led by Mukesh Ambani, operates primarily in the industrial infrastructure space. As of September 2024, promoters held a 45.43% stake in the company, underscoring its strategic importance within the Reliance Group.

Outlook

With strong short-term technical indicators and heavy trading activity, RIIL is poised for potential upside, contingent upon a breakout above the critical ₹1,220 resistance level. Investors are advised to monitor key levels and market trends closely.