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    RIL AGM countdown: Trading strategy for Dalal Street, what does stock history show?

    Synopsis

    While the listing of Jio Financial is done, investors will be keen to know the game plan for the company in the fast growing financial services industry in the upcoming AGM.

    RIL AGM countdown: Trading strategy for Dalal Street, what does stock history show?ETMarkets.com
    Reliance Industries is all set to hold its 46th annual general meeting (AGM) with the shareholders on August 28.

    Dalal Street investors keenly look forward to it, as Chairman Mukesh Dhirubhai Ambani has historically made key business announcements in AGMs.

    To name a few, stake sale in the telecom and retail subsidiaries, Reliance Jio’s tie-up with Google, the launch of 5G services, New Energy business, etc are some of the announcements Ambani made at the AGM in the last few years.

    The talk of the town this time around is Jio Financial Services, the demerged financial services entity of RIL, which made its debut on Monday.

    Dalal Street was anticipating the listing announcement around the AGM, but stock exchanges gave a surprise gift to investors on Friday.

    Key Expectations
    While the listing of Jio Financial is done, investors will be keen to know the game plan for the company in the fast growing financial services industry in the upcoming AGM.

    Last month, RIL announced its entry into the $540 billion mutual fund industry in India through a 50:50 joint venture with the world’s largest asset management firm BlackRock.

    Through this JV, RIL aims to offer affordable and innovative investment solutions to millions of investors in India.

    Investors will be keen to know the strategy to drive growth in this business from Ambani. Besides Jio Financial, the Street will want to know further plans for the retail business, which now forms the largest part of RIL’s valuation.

    Further, developments on the new energy business front and debt reduction plans will be eyed by investors.

    Stock Performance
    Given that Ambani makes big bang announcements around the AGM, the stock remains in action in the run-up to the event.

    Historical performance of RIL stock, prior to the AGM, shows that it has gained in 3 of the last 5 years.



    So far in August, shares of the conglomerate have net gained 0.3%.

    How to trade RIL this time?
    The view for RIL stock this time around is mixed, with some expecting rangebound movement, while a few anticipating a bullish trajectory.

    Technically, at this point in time, the stock has confirmed its highest close on the weekly charts, but on the smaller time frame, it is witnessing negative divergence in RSI, said Mehul Kothari, AVP - Technical Research, Anand Rathi Shares and Stock Brokers.

    “We expect some rangebound action in the coming sessions. As of now, the range is Rs 2,630-2,460, and only a move above or below the range might dictate further trend for the stock,” Kothari said, recommending investors to be on a wait and watch mode.

    Meanwhile, Rajesh Palviya of Axis Securities believes that the stock might see a short covering-led rally if it crosses Rs 2,600.

    “We expect the stock to exhibit a bullish trend, and once it manages to cross Rs 2,600 level, then it may see a short covering rally towards Rs 2,650-2,700 in the near term,” Palviya said. On the downside, he sees support for the stock at around Rs 2,460-2,470 zones.

    (Data inputs from Ritesh Presswala)

    (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)



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    (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2024 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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