Reliance Industrial Infrastructure share price: Chart Check: Up 200% in a year! This Reliance group stock gave a 14-year monthly trendline breakout; time to buy?
The smallcap hit a fresh 52-week high of Rs 1,132.50 on 27 April. It has rallied more than 17 per cent in a week, and about 50 per cent in a month, data from Trendlyne showed.
The recent price action pushed the stock above the 14-year monthly trendline which augers well for the bulls and could well take the stock towards Rs 2,000-2,300 in the next 6-12 months, suggest experts.
Reliance Industrial Infrastructure, engaged in logistics provider, has a market capitalization of more than Rs 1,700 crore. The company is mainly engaged in the business of setting up/operating industrial infrastructure.
The stock was hovering above Rs 3,000 levels back in October 2007, but the trend went sideways. It hit a low of around Rs 160 in March 2020 before bouncing back.
The trendline breakout on high volumes supports a bullish argument in the stock. Investors owning the stock can continue to hold the stock while fresh money can be deployed on dips towards Rs 700, suggest experts.
The stock is trading well above crucial short and long-term moving averages such as 20,50,100 and 200-DMAs which is positive for bulls.
“The stock price started its downfall from Rs 3,202 (October 2007). It recorded a series of lower tops and lower bottoms formations followed and finally the stock made a low of Rs 164 (March 20),” Bharat Gala, President – Technical Research, Ventura Securities Ltd, said.
“Value buying followed and the stock started making higher bottoms with few consolidation phases during the up move. The stock recently gave a 14-year monthly trendline break out and made a high of Rs 1,132.50 accompanied by supportive volumes,” he said.
The KST, MACD & VORTEX Indicator suggest a possible up move.
Gala further added that the possible targets are Rs 2,000-2,300-2,600. If the stock price corrects downwards the buy levels are (Rs 1,015-945)-Rs 889 – (Rs 833-799). A stop loss to be observed in the trade is Rs 700.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
