Reliance shares in focus for 2nd session, SAMCO flags historical rally pattern
The stock has decisively broken above a prolonged downward-sloping trendline, indicating that selling pressure may be giving way to fresh buying interest
Reliance Industries shares have been a focal point for traders on the second trading session after a sharp 12% rally in the previous day, propelling the company to the forefront of the broader market surge. Trading at ₹1,294.40 by 10:43 am on Tuesday, the stock exhibited moderate movement following its significant gains, as traders focused on the stock's robust performance and strong September quarter results.
Apurva Sheth, Head of Market Perspectives and Research at SAMCO Securities, highlighted that Reliance Industries surged 11.6% in a single session, accompanied by an extraordinary volume breakout, breaking above a prolonged downward-sloping trendline. SAMCO identified nine instances since 2000 where Reliance gained more than 5% in a session with volumes exceeding three times the previous five-day average, all resulting in positive one-year forward returns with an average gain of 55.32%.
Compared to the Nifty 500, seven out of the nine instances outperformed, delivering an average alpha of 44.12%. The stock is down 30.26% year-to-date, contrasting with the Nifty 50's 10.87% decline. Sheth noted that the breakout coincides with several fundamental triggers, such as the successful Jio Platforms IPO and strong September quarter results, including record EBITDA and profit after tax.
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