Reliance Q2 results: Here’s how RIL stock likely to open tomorrow; Should you buy, sell or hold?

Oil to telecom conglomerate Reliance Industries, on Monday, reported a decline in profit for the July-September quarter on Monday, primarily driven by weaker performance in its core oil-to-chemicals segment and its retail business.

Investors will be paying close attention to the heavyweight stock on Tuesday, October 14, as the quarterly results are expected to impact the stock's movement.

“The current trading pattern of Reliance Industries' share price indicates a period of consolidation within a 15% range, lacking a clear directional bias. Analysis of the price action reveals a fair value area between 2810-2705, serving as a demand zone. The share price is currently below its 200 daily MA( moving average), necessitating the sustained maintenance of the mentioned support zone on a closing basis to mitigate potential losses,” said Kushal Gandhi, Technical Analyst, StoxBox.

Gandhi further recommends investors to refrain from buying the stock await confirmation of the price action reclaiming its 200 daily MA. “Despite the current favorable risk-to-reward ratio, caution is advised due to relatively weak relative strength compared to the Nifty50, EPS strength, buyer demand, and less favorable technical indicators. Therefore, it is recommended to refrain from purchasing the stock and await confirmation of the price action reclaiming its 200 daily MA, which now acts as immediate overhead resistance near 2912,” he added.

Reliance Industries Q2 results

Mukesh Ambani-led conglomerate posted a consolidated profit of ₹16,563 crore, marking a 4.7 per cent decline compared to the same quarter last year. Consolidated revenue from operations remained stable at ₹2,35,481 crore for the quarter.

Reliance reported consolidated EBITDA (earnings before interest, tax, depreciation, and amortization) of ₹43,934 crore, reflecting a 2 per cent year-on-year increase. The EBITDA margin stood at 17 per cent, slightly down from 17.5 per cent in the previous year.

Meanwhile, the company's total debt at the end of the quarter was ₹3,36,337 crore, up from ₹2,95,687 crore at the close of Q2FY24.

"Our performance reflects robust growth in digital services and upstream business. This helped partially offset the weak contribution from the O2C (oil-to-chemicals) business, which was impacted by unfavourable global demand-supply dynamics," said Mukesh D. Ambani, Chairman and Managing Director of Reliance Industries Limited.