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Shares of Reliance Infrastructure Ltd on Wednesday jumped 13.62 per cent to hit a day high of Rs 239. At this price, the stock traded 3.75 per cent lower from its one-year high price of Rs 248.30, a level seen earlier this year on January 9. Despite the mentioned fall, the scrip has given multibagger returns by rallying 108.55 per cent from its 52-week low price of Rs 114.60, hit on February 23 last year.
The company's consolidated net loss widened to Rs 421.17 crore in the December quarter (Q3 FY24), due to higher expenses. It had clocked a net loss of Rs 267.46 crore in the year-ago period.
The company's total income, however, rose to Rs 4,717.09 crore from Rs 4,224.64 crore in the same period last fiscal. But expenses surged to Rs 5,068.71 crore in Q3 FY24 from Rs 4,840.87 crore in the third-quarter of the previous fiscal.
Technical analysts said support on the counter could be seen at Rs 224, followed by Rs 214, Rs 200 and Rs 190 levels. On the side, a decisive breach above its one-year high level of Rs 248 is required for a further potential upside.
Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "The stock has been in a bullish trajectory, hovering in a cycle of higher highs – higher lows for more than a year now. It has recently started gaining traction and now inching towards its previous high of Rs 248. A decisive breach above the said level could trigger the next leg of a rally towards Rs 260-270 on an immediate basis. On the flip side, Rs 200 is likely to cushion any blip, followed by major support of Rs 190 in the comparable period."
Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 220 and resistance at Rs 240. A decisive close above Rs 240 level may trigger a further upside till Rs 255."
AR Ramachandran from Tips2trades said, "Reliance Infra stock price looks bullish on daily charts with strong support at Rs 214. A daily close above resistance of Rs 246 could lead to a target of Rs 278 in the near term."
DRS Finvest founder Ravi Singh said, "The stock is looking strong on daily charts and may hit Rs 245 in the near term. Keep stop loss placed at Rs 224."
The counter's 14-day relative strength index (RSI) came at 59.31. A level below 30 is defined as oversold while a value above 70 is considered overbought.
The company's stock has a negative price-to-equity (P/E) ratio of 2.29 against a price-to-book (P/B) value of 1.10. Reliance Infra has a one-year beta of 0.6, indicating low volatility.
The firm is engaged in the business of providing engineering and construction services for power, roads, metro rail, and other infrastructure sectors.
(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)
