Reliance 05 May 2025 - From a panic low of 1114 to 1439 now in four weeks. Key driver of Nifty.
Just exercise extreme caution. This is a very overbought stock. Technical indicators show no signs of weakness yet, but this could take longer than expected.In my opinion, the key resistance is 1465. This stock will automatically fall on the index if it begins to correct.
Key Technical Indicators
- Relative Strength Index (RSI 14): 79.41 — indicates an overbought condition, suggesting the stock may be due for a short-term pullback.
- Stochastic RSI (14): 100.00 — also overbought, reinforcing the potential for a near-term correction.
- MACD (12,26): 21.18 — bullish crossover, signalling upward momentum.
- ADX (14): 34.55 — indicates a strong trend, supporting the current bullish movement.
- Williams %R: -8.13 — overbought territory, suggesting caution.
- CCI (14): 180.38 — strong buy signal, indicating continued upward momentum.
Moving Averages
All major moving averages are currently signalling a "Buy":
- MA5: 1,425.40
- MA10: 1,420.19
- MA20: 1,411.73
- MA50: 1,357.67
- MA100: 1,302.04
- MA200: 1,276.32
The stock is trading above all these averages, indicating a strong upward trend.
While the overall trend remains bullish, the overbought readings on RSI and Stochastic RSI suggest that the stock may be due for a short-term correction or consolidation. Investors should monitor these indicators closely for potential signs of a reversal.
As of March 31, 2025, the ownership structure of Reliance Industries Ltd. (NSE: RELIANCE) is as follows:
Promoter Group
- Ambani Family & Associated Entities: Hold approximately 50.1% of the company's shares, maintaining majority control.
Institutional Investors
- Domestic Institutional Investors (DIIs): Increased their holdings from 38.36% to 38.60% in the March 2025 quarter.
- Mutual Funds: Raised their stake from 9.14% to 9.21%, with the number of mutual fund schemes increasing from 86 to 89.
- Foreign Institutional Investors (FIIs): Slightly reduced their holdings from 19.16% to 19.07%, although the number of FII/FPI investors grew from 2,232 to 2,246.
Major Shareholders
- Srichakra Commercials LLP: Holds approximately 10.93% of shares.
- Tattvam Enterprises LLP, Devarshi Commercials LLP, and Karuna Commercials LLP: Each owns around 8.06%.
- SBI Funds Management Ltd.: Possesses about 2.44% of the company.
- GIC Pte Ltd. (Singapore's Sovereign Wealth Fund): Holds approximately 1.22%.
- UTI Asset Management Co. Ltd.: Owns around 0.75%.
Recent Trends
- Domestic Institutional Investors (DIIs) have surpassed Foreign Institutional Investors (FIIs) in overall holdings of Indian equities, holding a record 17.62% stake as of March 31, 2025, compared to FIIs' 17.22%.
- Foreign Institutional Investors (FIIs) have been net sellers of Reliance shares over the past two years, reducing their ownership to decade lows.
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