The share price of Reliance Industries (RIL) rose nearly 2 percent in the early trade on January 21 after the company got the approval of the Securities and Exchange Board (SEBI) for its deal with Kishore Biyani-led Future Group.
In August 2020, Biyani had entered into a Rs 24,713 crore agreement with Reliance Retail, an arm of the Mukesh Ambani-led Reliance Industries Limited (RIL), to sell its retail, wholesale, logistics, and warehouse businesses to Reliance Retail Retail Ventures (RRVL). The market regulator gave the nod to the deal on January 20.
"The company shall ensure that the shares of the transferee entity issued in lieu of the locked-in shares of the transferor entities are subjected to lock-in for the remaining period post scheme," the SEBI said.
"For the last couple of months, Reliance Industries had been trading within a narrow consolidation range on the daily timeframe. On January 18, the stock finally witnessed a consolidation breakout, trading above its trendline support. In this recent price spurt, the stock has given a breakout about its 21 and 50-day moving averages on a daily timeframe, which is extremely positive for the counter," said Rohan Patil, Technical Analyst, Bonanza Portfolio.
Momentum oscillator RSI (14) has given a horizontal trendline breakout, placed near 50 levels, and is currently reading above 55 levels with a bullish crossover on the daily scale, he said. "Buy the stock with a target price of Rs 2,175 and stop loss of Rs 1,990," Patil added.
At 0924 hours, Reliance Industries was quoting at Rs 2,080.50, up to Rs 25.80, or 1.26 percent, on the BSE.
Source:moneycontrol
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