Technical Outlook Of Reliance Industries

RIL (CMP: 870) is a clear under performer over the last couple of years because of various reasons like:

• Recent crash of Crude Price
• Oil & Gas is a politically sensitive item in our country & numerous litigation is going on with the RIL  regarding gas pricing and all etc.

 But the situation may change over the next few years. With this, coupled with complete deregulation of oil (RIL again started its retail pumps networks) & foray into 4G network venture, one can expect its full year EPS from INR 68 level to at least INR 80 by FY-2015-16. Its enjoying a poor P/E of around 13 against an industry average of around 18. By this simple assumption, one could expect a price of around INR 1600 (80*20) by next Jan'2016 (taking forward P/E as 20).

Technically, RIL should sustain above 875 for 902-925 zone & 1016 (for short term) & medium term tgt of 1150.

Sustain above 1150, may invite 1650 zone in the next one year.

On the down side, 830-825 is a strong support zone followed by 805-793 area. (Low Probability)