Rebounding of Reliance Industries Ltd
Reliance Industries Ltd (NS:RELI), India’s largest private company by market value has been losing crores as it continued to be red candlestick for five straight trading sessions. The company’s market capitalization fell by Rs. 99,430.93 crores to Rs. 8,42,262.64 crore which was one of the highest losses in one day of the share. The Coronavirus fears have triggered a global sell-off sentiment in the market resulting in the downfall of market prices of almost every stock listed.
The following Ichimoku cloud indicator shows an upward trend for the company’s price movements by the formation of a green cloud. Even though the Chikou span line is signifying a downward trend for the stock, the following changes are whipsaw effects due to the global scenario which is affecting the multinational companies throughout the world. The company’s share price had hit its all-time high price of Rs.1609.95 when the Union Budget 2020 was announced and a bullish trend was continued with the change in price. The Indian conglomerate has been restructuring its business operations slowly which would ensure a better position and exposure for its subsidiaries.
Reliance Industries (NS:RELI) have also infused 500 crores by acquiring a 37.7% stake in Alok Industries (NS:ALOK). The company has been consistent in diversifying its business and well established with the presence of numerous subsidiaries across the globe. Also, the company has decided to merge its TV18 Broadcast Ltd. (NS:TVEB). Hathway Cable (NS:HAWY) & Datacom and Den Network with Network 18 Media (NS:NEFI) and Investments which will be generating a consolidated revenue for the company.
The above graph also indicates the steady trend of the stock price as there is no signal of a downward trend, but a slightly distracted trend can be foreseen as the result of the global scenario of natural disasters and Coronavirus which has impacted the market sentiments of the investors. The decline in the price of the share is a part of price correction movements of the market which would be stabilized in the upcoming trading sessions and resulting in a bullish trend.