The rally picked up pace after the company announced a strategic partnership between its subsidiary, Reliance Aerostructure, and French aerospace major Dassault Aviation to manufacture Falcon 2000 business jets in India. But beyond the news-driven rally, technical indicators suggest there could still be more room to run.
Technical indicators point to further upside
Kunal V Parar, VP – Technical Research & Algo at Choice Broking, said the stock has shown strong momentum, breaking above a key swing high on the weekly chart—an indicator of potential further gains.”On the weekly chart, the stock is comfortably trading above its 100-week and 200-week moving averages, reflecting a strong bullish trend. On the monthly chart, the stock appears to be on the verge of a Cup and Handle breakout, which suggests a continuation of the ongoing momentum,” he said.
He also noted a bullish breakout in the RSI on the weekly timeframe, suggesting strengthening positive breadth in the counter.
“We expect the stock to continue its upward journey towards the Rs 420–470 zone, with a strict stop loss at Rs 344,” Parar added.
Laxmikant Shukla, Senior Manager – Technical Analyst at YES SECURITIES, also pointed to a strong technical reversal.
“The stock formed a bullish tweezer bottom reversal pattern on the daily chart, negating the five-day correction phase and breaking the sequence of lower highs and lower lows,” he said.
He noted that the rebound was supported by rising trading volumes and a bullish crossover in the stochastic oscillator, both of which confirm renewed buying interest.
“From a risk-reward standpoint, the stock looks well-positioned to extend its upward movement in the near term. We recommend buying Reliance Infra shares in the range of Rs 385–388, with a stop loss at Rs 375 and a target price of Rs 414,” Shukla said.
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Dassault jet manufacturing deal
Reliance Infrastructure’s recent rally was also supported by its aviation venture. The company has partnered with Dassault Aviation to manufacture Falcon 2000 business jets in India—the first time the French firm will assemble these jets outside France.
Announced at the Paris Air Show, the agreement involves setting up a final assembly line at Dassault Reliance Aerospace Limited (DRAL) in Nagpur, Maharashtra. The plant will serve as a global centre of excellence for Falcon jets and may also support future Falcon 6X and 8X programs.
Also Read:8 debt-free penny stocks that surged 110-300% in the last 1 year. Do you own any?
Capital infusion to boost growth plans
In a separate update, the company has raised Rs 300 crore through the allotment of 1.25 crore fully paid-up equity shares at Rs 240 per share. The shares were issued to promoter group entity Risee Infinity Private Limited as part of an accelerated warrant conversion.
This infusion is part of a larger preferential issue worth Rs 3,014.40 crore announced in October 2024. According to the company, the fresh funds will enhance financial flexibility and support long-term growth.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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