Reliance Industries Faces Critical Breakdown Amid Global Market Volatility

Reliance Industries Ltd (RIL) has broken below critical long-term support levels, signaling potential further downside. The stock has declined 8.5% since January-end and is now down 28.2% from its July 2024 all-time high. Trading below all major moving averages, RIL faces key support at ₹1,135, ₹1,107, and ₹1,000, while resistance is seen at ₹1,175 and ₹1,260. If the decline continues, it may test ₹1,065 and potentially ₹935, a level not seen in nearly four years.

Meanwhile, global markets are under pressure as U.S. President Donald Trump imposed a 25% tariff on imports from Canada and Mexico, leading to a sharp sell-off. The Dow Jones fell 1.5%, the S&P 500 lost 1.8%, and the Nasdaq dropped 2.6%, reflecting investor concerns. Indian markets also reacted negatively, with the BSE Sensex falling 424.50 points and the NSE Nifty slipping below 22,000 to 21,966.95, marking a nine-month low. IT, metal, and real estate stocks faced the biggest declines, with the Nifty Metal Index down 1%. Amid RIL’s technical weakness and global trade tensions, market sentiment remains cautious, and investors are advised to monitor developments closely.

Reliance Industries Faces Critical Breakdown Amid Global Market Volatility

Reliance Industries Ltd (RIL) has broken below a critical long-term support level, signaling potential downside risks. After struggling around its 100-week moving average (WMA) for weeks, the stock resumed its downtrend in late February. Since January-end, RIL has declined by 8.5% and is now down 28.2% from its all-time high of ₹1,609 recorded in July 2024.

During recent trading sessions, the stock dropped to a 15-month low and, more significantly, slipped below its super trend line support on the monthly chart—something not seen since April 2014. Until February, RIL managed to hold the ₹1,200 support level, but sustained trading below this mark over the past two sessions raises concerns of a potential breakdown from an 11-year uptrend.

Currently priced at ₹1,167, the stock faces a downside risk of nearly 20%. Key support levels lie at ₹1,135, ₹1,107, and ₹1,000, while resistance is seen at ₹1,175 and ₹1,260. With RIL trading below all major moving averages, the overall sentiment remains bearish. If the decline continues, the stock may test the lower end of its monthly Bollinger Bands near ₹1,065 and could extend losses towards its 100-month moving average (MMA) around ₹935—a level not seen in nearly four years.

As of March 4, 2025, the global stock markets are experiencing significant volatility, primarily due to the recent implementation of tariffs by the United States. President Donald Trump announced a 25% tariff on imports from Canada and Mexico, effective today, March 4, 2025. This decision has led to notable declines in major U.S. stock indices:

• The Dow Jones Industrial Average fell by 1.5% (approximately 649 points), closing at 43,197.30.
• The S&P 500 decreased by 1.8%, ending at 5,850.31.
• The Nasdaq Composite dropped 2.6%, closing at 18,350.19.

These declines have been attributed to investor concerns over the potential economic impact of the tariffs.

In India, the stock markets opened in the red, reflecting the global sentiment:

• The BSE Sensex fell by 424.50 points, reaching 72,661.44.
• The NSE Nifty dropped 152.35 points, slipping below the 22,000 mark to 21,966.95.

This marks a nine-month low for the Nifty, influenced by the U.S. tariff announcements and subsequent global market reactions.

Sector-wise, IT, metal, and real estate stocks have experienced the most significant declines. The Nifty Metal Index decreased by approximately 1%, while the BSE IT Index has seen declines in six of the last seven sessions.

Investors are advised to exercise caution during this period of heightened volatility and to monitor developments related to international trade policies closely.