How to trade Reliance stock ahead of its AGM on Aug 29? Key levels here

Technical Outlook on RIL ahead of Thursday's AGM: Reliance stock can potentially surge to Rs 3,405 on the upside, suggests chart. Key support for the stock stands at Rs 2,975.

Shares of Mukesh Ambani-led Reliance Industries (RIL) are in focus ahead of the company's 47the Annual General Meeting (AGM) scheduled for Thursday, August 29, 2024, at 2 PM Indian Standard Time (IST).

At close on August 28, Reliance stock ended almost flat at Rs 2,999. The stock hit a high of Rs 3,015 and a low of Rs 2,985 amid trades of around 51,000 shares on the BSE. In comparison, the BSE Sensex was up 0.1 per cent or 70-odd points at 81,785 levels.

As of date, Reliance stock was trading 7.2 per cent below its all-time (also its 52-week) high of Rs 3,218 hit in July 2024; and was up 35.2 per cent when compared with its 52-week low of Rs 2,221 hit in August 2023.

 

In the AGM tomorrow, the market will be closely tracking announcements regarding Reliance Jio and Reliance Retail IPOs. That apart, analysts expect an update on the new energy business and plans of deleveraging RIL's balance sheet. READ MORE

Reliance is an index heavyweight; hence any sharp reaction in the stock price during the AGM is bound to have a significant impact on the BSE Sensex and the NSE Nifty.

 

 
On the occasion of the past 5 AGMS, Reliance stock has the sharpest movement in the year 2019, wherein the stock surged 9.7 per cent on the day of the AGM. On the negative side, in the year 2020 RIL stock had dipped 3.8 per cent on the big day.

In the year 2019, on August 12, Reliance stock rallied strongly following the announcement of the launch of Jio's much-awaited fibre-to-home service and Jio Set-Top box. That apart, the chairman and managing director, Mukesh Ambani had also announced its roadmap to be a debt-free company.

Meanwhile, for the quarter ended June 2024; the oil-to-telecom conglomerate missed Street expectations on the earnings front and posted its second consecutive decline in quarterly profit. The company's Q1FY25 consolidated net profit dipped by 5.5 per cent year-on-year (YoY) to Rs 15,138 crore. Revenue, however, grew by 11.7 per cent YoY to Rs 2.32 lakh crore.

Against this background, what should be your trading strategy in Reliance stock ahead of its AGM on August 29? Should you buy, hold or sell the stock?

Here's what the charts suggest:

Reliance Industries

Current Price: Rs 3,003

Upside Potential: 13.4%

Support: Rs 2,975; Rs 2,960; Rs 2,880

Resistance: Rs 3,052; Rs 3,235; Rs 3,300; Rs 3,353

After hitting a new high in July 2024, Reliance stock corrected for the last two months is seen consolidating in the narrow band of Rs 2,890 - Rs 3,050. The stock seems to be facing an overhead resistance in the form of its super trend line on the daily scale at Rs 3,052 levels. 

The stock will need to break and trade consistently above the Rs 3,052 hurdle for a fresh uptrend to start. On the upside, the stock can potentially rally to a new all-time high at Rs 3,405. Interim resistance for the stock can be expected around Rs 3,235, Rs 3,300 and Rs 3,353 levels.

On the flip side, support at Rs 2,975 is the key for the stock. Failure to hold this support level, can trigger a fresh round of weakness at the counter; wherein RIL stock can potentially slide to Rs 2,740. Interim support for the stock can be expected around Rs 2,960 and Rs 2,880 levels.

Reliance stock chart