Reliance Industries Shares Witness Strong Rebound in February Trading
Reliance Industries Limited (RIL) shares have demonstrated remarkable resilience this month, attracting substantial buying interest after a challenging January. The stock price advanced by nearly 1% during Monday's morning session on the Bombay Stock Exchange, marking its second consecutive day of gains. This positive movement extends a broader monthly trend, with RIL shares appreciating by approximately 5% throughout February so far. This recovery comes as a welcome reversal following an 11% decline experienced in January, when the stock retreated from its all-time peak of ₹1,611.20 recorded on January 5.
Analysts Express Confidence in Long-Term and Short-Term Prospects
Market experts maintain a predominantly optimistic outlook for Reliance Industries, citing the company's robust growth trajectory across its diversified business segments. The recent improvement in market sentiment, partly fueled by the finalized India-US trade agreement, is expected to further bolster the stock's performance in the near term.
"The India-US trade deal represents a significant positive development for this heavyweight stock," stated Ajit Mishra, Senior Vice President of Research at Religare Broking. "Much of the previous market uncertainty was linked to this event, especially relative to regional competitors. While only preliminary details are available, the outcome appears favorable." Mishra has issued a buy recommendation for RIL with a target price of ₹1,627.
Strong Quarterly Performance Underpins Bullish Sentiment
The company's solid financial results for the third quarter of fiscal year 2026 have reinforced analyst confidence. On January 16, the Mukesh Ambani-led conglomerate reported:
- A consolidated net profit of ₹22,167 crore, reflecting a nearly 2% year-on-year increase.
- Consolidated operational revenue rising 10.51% YoY to ₹2,69,496 crore.
- Consolidated EBITDA growing 6.1% YoY to ₹50,932 crore, although the EBITDA margin contracted by 70 basis points to 17.3%.
Strategic Positioning and Diversification Drive Long-Term Value
Seema Srivastava, Senior Research Analyst at SMC Global Securities, emphasized Reliance's unique market position. "Reliance represents a rare blend of scale, strategic optionality, and execution capability across multiple economic cycles," she noted. The company's expansive portfolio spanning energy, digital services (Jio Platforms), retail, media, and emerging new energy sectors positions it as a fundamental proxy for India's structural growth narrative.
Srivastava highlighted several key strengths:
- Jio Platforms: Continues to solidify its market leadership through rising Average Revenue Per User (ARPU), accelerating 5G adoption, and expanding broadband penetration, enhancing monetization potential.
- AI Collaboration: The strategic partnership with Google on artificial intelligence significantly elevates Jio's capabilities, enabling Reliance to integrate AI across consumer and enterprise solutions at scale.
- Reliance Retail: Remains a formidable growth engine, leveraging unparalleled distribution networks, rapid store expansion, and increasing consumer engagement through hyper-local delivery and omnichannel strategies.
"While risks such as macroeconomic slowdown and upstream volatility persist, Reliance’s balance sheet strength, integrated ecosystem, and ability to pivot capital toward high-return opportunities mitigate downside risks," Srivastava concluded.
Technical Analysis Suggests Constructive Outlook
Beyond fundamental strengths, technical indicators also point toward potential upside for Reliance shares. Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, observed that the stock is currently trading in a consolidation phase between its 200-day exponential moving average and 200-day simple moving average.
Patel identified a critical support zone between ₹1,390 and ₹1,395, corresponding to an unfilled price gap likely to attract buying interest during pullbacks. Furthermore, the Moving Average Convergence Divergence (MACD) indicator has recently shown a bullish crossover from extremely low levels—a pattern not witnessed since November 2024—signaling a potential momentum shift.
"Considering these technical factors, the outlook appears constructive," Patel advised. "Investors may consider accumulating the stock in the ₹1,390–1,430 range, with an upside target of ₹1,530 and a stop loss placed at ₹1,360 on a closing basis."
Aakash Shah, Research Analyst at Choice Broking, echoed this positive technical perspective. He noted that Reliance's price action shows a recovery attempt, with the stock reclaiming the 20-day Exponential Moving Average (EMA) and stabilizing near the 50-day EMA, reflecting improving short-term momentum. The Relative Strength Index (RSI) has rebounded above the 50 level, indicating strengthening momentum and early accumulation activity.
"Structurally, the recent swing low near ₹1,380 now acts as a critical demand zone. As long as price holds above this base, the recovery structure remains valid and favours continuation toward the overhead resistance zone near ₹1,580," Shah explained.
In summary, Reliance Industries shares are experiencing a robust February recovery driven by strong fundamentals, favorable macro developments like the India-US trade deal, and encouraging technical signals. Analysts remain broadly bullish, viewing the company as a well-diversified conglomerate strategically positioned to capitalize on India's long-term economic and digital transformation.
