rewrite this title and make it good for SEORIL Q4 profit beats expectations: How will the stock react on Monday? key tips to trade

Reliance has reported a strong fourth quarter beat in profitability as the bottom line rose 2% year-on-year (YoY) to Rs 19,407 crore. The Street was expecting the profit to be around Rs 18,471 crore. Revenue from operations too surged 10% YoY to Rs 2.64 lakh crore.

The growth was driven by telecom and retail businesses, which helped offset the impact of a weaker oil-to-chemicals cycle and softer gas realizations. This was the trend even in the previous quarter, where retail and Jio have powered the company’s earnings over the past.

The Jamnagar complex, which houses two refineries with a combined capacity of about 1.4 million barrels per day, has historically been the powerhouse of Reliance’s O2C operations and a key profit driver.

Along with the results, the company also announced a Rs 5.5 dividend and a major fundraising plan, indicating continued expansion plans. Despite a challenging global economic environment, Reliance said it maintained operational discipline and continued investing in growth initiatives, with the management striking an optimistic tone on the outlook.

How to trade RIL on Monday?

Ahead of the results on Friday, RIL shares closed marginally down at Rs 1,301. However, the stock has performed reasonably well this year, rising nearly 7%.

Analysts are in consensus that the stock is moving sideways within a narrow range and isn’t showing strong movement in either direction. “On the daily chart, we are observing a sideways movement which gives no clear direction of trend,” said Mileen Vasudeo, Sr Technical Analyst, Arihant Capital Markets.At present, RIL has immediate resistance at 1,341 level. Any close above 1,341 would propel the upside momentum and in such a scenario, it is likely to test 1,410-1,460 levels.”A move above Rs 1,320 could lead to a quick rise towards Rs 1,345–1,360, while falling below Rs 1,280 may drag it down to Rs 1,250. RSI is neutral, showing no strong trend. Until a clear move happens, traders can follow range-bound strategies,” said Riyank Arora, technical analyst at Mehta equities.Meanwhile, Vasudeo advised investors to buy the stock at current market levels with a stop loss of Rs 1,250 for a target Rs 1,410 – 1,460 levels in a couple of weeks.

Along with the results, the company has also announced a dividend and a major fundraising plan, indicating continued expansion in its future sectors.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)