Why Reliance Shares Jumped Back In Green After 3 Days

Reliance’s share price jumped back in the green after three straight sessions of losses.

What Happened: The stock is upbeat today as Morgan Stanley maintained its “overweight” rating for the stock with a price target of ₹3,046. The target implies an around 8% upside from the stock’s last closing price of ₹2,836.45.

The brokerage said that it sees the Reliance share price going up over the next 60 days for several reasons. Firstly, the analyst mentioned that there are signs of improvement in chemical margins arising from a positive trend in the global fuel markets.

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Lower global ethane prices provide a cost advantage for the company, which could translate into higher margins and increased profitability. This favourable pricing environment will likely support the upside potential, the analysts added.

As per the analysts, the confluence of these factors creates a tailwind of multiple catalysts that are expected to propel the share price upward. These catalysts include improving chemical margins, declining debt levels, and favourable pricing dynamics in the global ethane market.

Price Action: Reliance’s share price was up 0.60% to trade at ₹2,853.60 as the markets opened on Monday.

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