Reliance Industries: Strong Q1, But Technical Hurdles Still Remain

reported a better-than-expected Q1 FY27 performance despite a 22% YoY decline in net profit to ₹20,946 crore, largely due to the absence of last year's one-time exceptional gain. Operationally, the quarter remained healthy with 25% YoY revenue growth to ₹3.11 lakh crore, supported by strong Oil-to-Chemicals (O2C) performance, steady growth in Jio, and resilient Retail operations. The results indicate that the company's core businesses continue to perform well, making the earnings broadly positive from an operational standpoint. From a technical perspective, the stock has shown signs of stabilizing after a prolonged correction. On the daily chart, Reliance has moved above its short-term moving averages (20 EMA and 50 EMA), while the RSI has improved near 56, indicating strengthening momentum. However, the stock is still trading below the 100 SMA (around ₹1,353) and well below the 200 SMA (around ₹1,414), suggesting that the medium-term trend has not yet turned decisively bullish. The weekly chart also reflects a recovery from recent lows, but the stock continues to trade below its key weekly moving averages. This indicates that buying interest has returned, though confirmation of a sustained uptrend is still awaited. For the near term, ₹1,350-1,355 will be the first resistance zone. A decisive breakout above this level could open the door for ₹1,400-1,430. On the downside, ₹1,300 remains an important support, followed by ₹1,280. Holding above these levels would keep the recovery intact. Overall, the combination of better-than-expected earnings and improving technical indicators may support positive sentiment. However, investors should watch for a breakout above key resistance levels before expecting a stronger medium-term rally. Long-term investors can continue to accumulate on declines, while short-term traders should wait for confirmation above the immediate resistance zone.