After a muted performance in 2024, Reliance Industries Ltd (RIL) shares have staged a remarkable comeback in 2025, surging 25% year-to-date.
This rebound comes despite muted returns in the stock over the past year, raising the question: is the rally sustainable, or just a technical bounce?Analysts tracking RILs technical structure believe the stocks uptrend has more legs.
Hardik Matalia, Derivative Analyst at Choice Broking, noted that the stock had been consolidating in a range after strong buying interest from lower levels.
It recently broke out of this base, delivering a sharp upward move that reaffirmed its long-term bullish structure.Reliance is currently trading at Rs 1,517.80 and continues to maintain its long-term uptrend.
The recent breakout shows strength, though resistance is visible near the Rs 1,530 mark, said Matalia.
He added that a brief pullback towards the breakout zone is possible, but such a move could offer a fresh buying opportunity for short-term traders.The Relative Strength Index (RSI) of the stock is currently placed at 66.83, indicating potential for sideways movement in the near term.
Still, the stock remains technically strong, trading above all key moving averages.Drumil Vithlani, Technical Research Analyst at Bonanza Portfolio, observed that the stock ended a recent session flat, forming a small-bodied candle with an upper wick a sign of selling pressure at higher levels.Live EventsResistance is visible in the Rs 1,5301,535 zone, which also aligns with the September 2024 high, he noted.
Despite that, the stock maintains a higher high, higher low formation, suggesting that the short-term trend remains positive.Vithlani recommends a buy-on-dips strategy in the Rs 1,5001,510 range, with a stop loss at Rs 1,465 and near-term targets of Rs 1,575 and Rs 1,600.Amit Trivedi, Vice President at YES SECURITIES, echoed the sentiment, stating that while the stock may consolidate in the near term, the medium-term outlook remains constructively positive.A buy-on-dips approach is deemed prudent, allowing for entry at relatively favourable levels, Trivedi said, adding that a sustained move could eventually push the stock toward the Rs 1,640 zone.Restructuring boosts sentimentThe technical strength in RIL shares is also supported by a major corporate restructuring announced earlier this week.
The company is spinning off its fast-moving consumer goods (FMCG) brands into a newly formed subsidiary New Reliance Consumer Products Ltd (New RCPL) as it prepares for a potential IPO of its broader retail business.The FMCG brands, currently spread across three entities Reliance Retail Ventures, Reliance Retail, and Reliance Consumer Products will now be consolidated under New RCPL.
This structure mirrors the setup used for Jio Platforms and is intended to bring specialised and focused attention to the consumer business, according to a June 25 National Company Law Tribunal (NCLT) order seen by The Indian Subcontinent.Analysts see the move as a strategic step to streamline operations and enhance valuation clarity for investors ahead of a mega retail IPO.
The consumer brands vertical, which includes products like Campa, Independence, Sosyo, and Ravalgaon, generated Rs 11,500 crore in revenue in FY25.This business also entails large capital investments and can attract a different set of investors, the NCLT order noted, underscoring RILs intent to isolate high-growth segments for strategic focus.OutlookWith a 25% rise in 2025 and renewed institutional interest following the FMCG demerger, RIL appears to be at an inflection point.
Technical analysts are watching closely for a breakout beyond Rs 1,530, which could pave the way for a move toward Rs 1,6001,640.Also Read: Defence outshines all sectors with 35% rally in 2025: Whats driving the surge and will it last?(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own.
These do not represent the views of the Economic Times)