Reliance shares swung between gains and losses in intraday trade on the BSE on Monday, 17 August, in a range-bound market. Shares of Reliance Industries (RIL) opened at ₹1,312.95 against its previous close of ₹1,308 and touched their intraday high and low of ₹1,318.90 and ₹1,299, respectively. Around 1:35 PM, the stock was 0.81% up at ₹1,318.60.
RIL share price traded volatily after the company announced a deal with Rolls-Royce to develop an indigenous engine for the Advanced Medium Combat Aircraft (AMCA).
Reliance Industries and Rolls-Royce on Friday, 14 August, announced they would collaborate on developing a sovereign combat aircraft engine for India’s AMCA programme.
Under the proposed partnership, the two companies will explore setting up an Aerospace Gas Turbine Complex in India.
Reliance Industries share price trend
Reliance shares declined nearly 2% last week, while on a monthly scale, it is up nearly 0.50% so far in August.
Year-to-date, the stock is down over 16% compared to a nearly 9% decline in the benchmark Sensex.
The heavyweight stock hit a 52-week low of ₹1,250.55 on 24 July after hitting a 52-week high of ₹1,611.20 on 5 January this year.
Should investors buy the dip?
On 17 July, Reliance reported a 25.41% YoY and 4.43% QoQ jump in revenue from operations to ₹3,11,850 crore for Q1FY27.
Profit attributable to owners of the company stood at ₹20,946 crore, with a 22.40% year-on-year decline largely due to the high base created by an exceptional gain recorded in the corresponding quarter last year.
RIL’s consolidated EBITDA at ₹54,067 crore rose by 10.1% YoY and 11.3% QoQ, while EBITDA margin slipped 210 bps YoY but increased 100 bps QoQ to 15.9%.
Most experts found the Q1 numbers largely in line with expectations and maintained their positive views on the stock, underscoring the company’s healthy growth prospects.
According to Pravesh Gour, a senior analyst at Swastika Investmart, Reliance has several potential catalysts that could support long-term value creation.
“The continued expansion and monetisation of Jio’s digital ecosystem, the scaling of Retail and the proposed Jio Platforms IPO could provide greater visibility to the value embedded within its consumer businesses,” said Gour.
“RIL’s substantial investments in solar manufacturing, battery technology and green hydrogen offer significant long-term optionality, although execution and returns on these investments will be important. It has also continued to invest heavily across its businesses, with Q1 FY27 capex at ₹38,682 crore, reflecting its focus on building future growth capacity,” Gour added.
Reliance Industries remains a fundamentally solid stock, supported by strong operating cash flows, improving contributions from digital and consumer businesses and multiple avenues for future growth.
However, some experts say that investors should closely monitor O2C (oil-to-chemical) margins, retail profitability, capital expenditure, leverage, New Energy execution and the pace of Jio monetisation.
“With its combination of established cash-generating businesses and new-age growth opportunities, Reliance remains a strong long-term large-cap investment candidate, although near-term performance could be influenced by crude prices, global market conditions and valuation,” said Gour.
Seema Srivastava, Senior Research Analyst at SMC Global Securities, also highlighted that Reliance Industries remains one of India’s strongest diversified platforms, with businesses spanning energy, petrochemicals, telecom, digital services, retail, media and new energy.
Srivastava said RIL’s long-term investment case is increasingly shifting from being predominantly an O2C-driven company toward a consumer, technology and new-energy-led conglomerate, supported by significant capital allocation and ecosystem integration.
The proposed Reliance–Rolls-Royce partnership for an indigenous combat aircraft engine for the AMCA programme is strategically significant.
Srivastava said beyond the immediate financial impact, the Reliance–Rolls-Royce partnership can position Reliance in India’s emerging defence-aerospace manufacturing ecosystem and aligns with the government’s push toward indigenous defence production.
“Reliance offers multiple long-term growth engines- Jio, retail, new energy, defence-aerospace and digital services- reducing dependence on the cyclical O2C business. Near-term margins may remain sensitive to commodity cycles and elevated capex, but continued execution, Jio monetisation and new-business commissioning could drive meaningful value creation over the long run,” said Srivastava.
Reliance shares technical outlook
Reliance shares are currently showing a range-bound to mildly bearish setup on the daily chart.
According to Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, the stock is trading just below the Keltner Channel midline near ₹1,312, indicating limited momentum.
RSI at 50.73 remains neutral, while DMI shows -DI at 24.82 above +DI at 21.03, suggesting a slight bearish bias. However, ADX at 8.46 indicates a weak trend and supports the consolidation view.
“On the upside, ₹1,375 is the immediate resistance, followed by ₹1,396–1,420. A sustained breakout above ₹1,420 could trigger fresh momentum toward ₹1,450. On the downside, ₹1,290 is the immediate support, followed by the Keltner lower band near ₹1,251. Overall, expect consolidation unless either ₹1,290 or ₹1,375 breaks decisively,” said Patel.
Vipin Kumar, AVP-Research at Globe Capital Market, pointed out that Reliance shares have been consolidating within a broader range of ₹1,100 to ₹1,600 for more than three years.
Within this macro consolidation structure, the stock has recently entered a short-term congestion phase, trading below its key moving averages in the 1,250–1,350 band over the past month and a half.
Kumar added that this short-term weakness offers an attractive risk-reward opportunity for long-term investors. Strong fundamental tailwinds in its digital (Jio) and retail segments, combined with steady cash flows from the traditional oil-to-chemicals (O2C) business, continue to provide a solid base for future growth.
Furthermore, ongoing investments in green energy are expected to unlock significant value over the medium term.
“We recommend using any price dips towards the ₹1,250 – ₹1,100 accumulation zone to add the stock for a medium-to-long-term perspective, targeting a retest of the upper boundary at ₹1,600,” said Kumar.
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Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
