Reliance share price hits 52-week low, drags Indian stock market lower for sixth straight session

Reliance Industries share price declined over 3% to a 52-week low on Wednesday, extending its fall to the fourth straight session. Reliance shares fell as much as 3.31% to a fresh 52-week low of ₹1,193.65 apiece on the BSE.

The fall in Reliance shares comes amid heavy volumes. Around 72 lakh Reliance shares changed hands on the stock exchanges on February 12 as against its one-week average of 93 lakh shares.

Reliance Industries Ltd (RIL) share price has been facing heavy selling pressure as it has dropped over 6% in one week and over 3% in one month. Meanwhile, on a one-year basis, the energy-to-telecom stock has fallen more than 17%.

Reliance shares have declined in five out of the past six sessions. The fall in index heavyweights has weighed down on the Indian equity benchmark indices, pushing them lower for the sixth consecutive session.

Sensex crashed over 800 points in morning trade on Wednesday, amid mixed global cues, while the Nifty 50 also declined over 1% to slip below the 22,900 level.

The overall market capitalisation of the BSE-listed companies dropped to nearly ₹400.5 lakh crore from ₹408.5 lakh crore in the previous session, with investors losing about ₹8 lakh crore in a day.

Should you buy Reliance shares after the fall?

On the technical front, RIL share price chart shows a crucial support level at ₹1,200 level.

“The trend in Reliance Industries stock price remains ‘neutral-to-bearish’. On the daily charts, RIL shares have a major pattern support of ₹1,200 level. This level is also a crucial support on the 200-week moving average. The behaviour of Reliance stock around this ₹1,200 level would shape the trajectory going forward,” said Milan Vaishnav, CMT, MSTA, founder of Gemstone Equity Research & Advisory Services.

According to him, if Reliance stock violates ₹1,200 and closes below that level, it may see further bearish momentum.

“A fall below the ₹1,200 level on a closing basis would further trigger a bearish momentum. If the stock remains above this level, we may see a technical rebound,” Vaishnav said.

At 10:50 AM, Reliance Industries shares were trading 1.91% lower at ₹1,211.00 apiece on the BSE.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.