Reliance Industries shares declined nearly 1.8% during Friday's trading session, emerging as one of the major drags on benchmark indices according to ET Now reports. Market experts believe the counter may continue to face weakness as technical indicators fail to show any strong support levels at current prices. The stock's sustained weakness could also impact broader market sentiment given its heavyweight status in the market. This decline comes as BofA has just cut India's earnings forecast from 14% to 8.5%, signaling potential headwinds for the broader market.
According to market experts, the stock currently lacks immediate support, making it vulnerable to further downside. Analysts indicated that the next major support level for Reliance Industries is positioned around the 1296 mark. They warned that if markets open weak on Monday with a gap-down start, the stock could slide further towards the 1310–1305 range. Technical charts suggest the stock structure has weakened considerably, with no clear signs of a reversal visible at the moment. The technical weakness is compounded by the broader market concerns signaled by BofA's earnings forecast revision.
While Reliance struggled, select IT stocks managed to remain resilient despite the cautious market environment, as reported by ET Now. Infosys and Tech Mahindra featured among the top gainers on the Nifty index, reflecting buying interest in the technology space. Meanwhile, attention shifted towards the power sector, particularly Power Grid Corporation of India, which gained over 1% during the session. The resilience in IT stocks contrasts sharply with the weakness in traditional heavyweight sectors like Reliance.
According to technical experts, Power Grid witnessed a breakout on the weekly chart around the 294 level and later touched the projected target of 323. Following profit-booking at higher levels, the stock is now seen consolidating in the 300–302 zone, which analysts consider a potential buying range. Experts suggested that investors may consider fresh buying in the stock around current levels with a stop-loss below 290.
Apart from technical factors, investors are closely watching Power Grid's upcoming quarterly earnings. Street estimates suggest the company may report revenue of around ₹12,900 crore, while EBITDA is expected near ₹10,900 crore. Reported profit is projected to come in at nearly ₹3,900 crore, reflecting a decline of about 5% compared to the same quarter last year. Analysts also estimate Q4 capital expenditure at around ₹8,600 crore, while asset capitalization could reach nearly ₹11,500 crore. The earnings season comes at a time when BofA has just cut India's earnings forecast from 14% to 8.5%, adding to market uncertainty.
