NEW DELHI: Shares of Reliance Industries Ltd extended its rally for the seventh consecutive day on Thursday and its market valuation crossed the Rs 14 lakh crore mark in morning trade. The market heavyweight stock has jumped 14.53 per cent in seven trading sessions to hit a high of Rs 2,250 on Thursday.
Following the upbeat sentiment, the company’s market valuation has reached Rs 14,04,123.26 crore on Thursday.
After record fundraising and debt prepayments, Reliance Industries now has a strong balance-sheet with high liquidity that will support growth plans for its three hyper-growth engines – telecom arm Jio, retail and oil-to-chemicals business, firm’s Chairman and Managing Director Mukesh Ambani said.
In the company’s latest annual report released on Wednesday, he said the company sold minority stakes in Jio Platforms – the unit that houses its telecom and digital business – and retail arm for almost Rs 2 lakh crore, 49 per cent in fuel retailing venture for Rs 7,629 crore and raised another Rs 53,124 crore through rights issue.
Reliance, Motherson Sumi among top trading ideas in June series
Bank, auto and oil stocks in limelight
Banking and finance, automobile and oil and gas companies are garnering most attention in the June derivatives series. Traders are adding bullish positions in state-owned banks while some metal stocks continue to enjoy bullish interest due to the ongoing rally in commodity prices. Auto stocks are in the limelight due to May sales numbers and corporate earnings. Meanwhile, Reliance Industries stood out in the derivatives segment as traders are covering short positions in the country’s most valuable company and expect it to reclaim record highs soon. ET takes a look at the top trading bets in the June futures segment.
Canara Bank
Current Market Price: Rs 163.8
OI Change in June Series: 36%
Share Price Change in June Series: 6.6%
The stock has been garnering bullish interest as part of the rally in public sector banks of late. “It has been slowly moving upwards for the last seven weeks and PSU banks are also getting attraction. It has support at Rs 155, then it may head towards Rs 175-180 zones,” said Chandan Taparia, derivative analyst at Motilal Oswal.
Reliance Industries
Current Market Price: Rs 2,201.25
OI Change in June Series: -8%
Share Price Change in June Series: 11.4%
Analysts said high spreads in polymers have prompted short covering, pushing the stock up in recent days. “Reliance has seen long build-up and is making higher top – higher bottom on a daily scale. It is at the verge of fresh consolidation breakout on weekly scale,” said Taparia of Motilal Oswal. “Till it holds above Rs 2,120 zone, it can head towards Rs 2,350 levels,” said Taparia.
Motherson Sumi
Current Market Price: Rs 269.10
OI Change in June Series: 12.4%
Share Price Change in June Series: 15.4%
Majority of the gains in Motherson Sumi came on Wednesday as the company reported a 289% year-on-year rise in its consolidated net profit to Rs 713.6 crore for the quarter ended March, which was sharply higher than analysts’ estimates. The stock can rise to Rs 285-290.
Amara Raja Batteries
Current Market Price: Rs 741.35
OI Change in June Series: 23.4%
Share Price Change in June Series: 0.5%
Sentiment in Amara Raja stock has been weak of late after car battery maker Clarios sold stake in the company recently. Palviya said one should avoid the stock. Shorting the stock could be risky as the stock has already fallen 30% from the recent high of around Rs 1,025, said Palviya. He said the stock may fall further if it slips below Rs 720 level.
“We now have a strong balance-sheet with high liquidity that will support growth plans for our three hyper-growth engines Jio, Retail and O2C,” he said.
During 2020-21, Reliance completed India’s largest ever Rights Issue of Rs 53,124 crore (oversubscribed by 1.59 times), which was also the largest in the world by a non-financial institution in the last 10 years.
