Reliance Industries Ltd Gains Momentum After 62% Spike in Trading Volume

Reliance Industries Ltd (RIL) has shown renewed strength in recent trading sessions, gaining momentum after a sharp 62% surge in trading volume. The stock’s price action and technical indicators suggest a potential short-term trend reversal, attracting growing attention from both retail and institutional investors. This increase in activity comes after a brief corrective phase, signaling a shift in market sentiment toward cautious optimism.

Strong Technical Breakout Signals Bullish Momentum

On Monday, Reliance Industries formed a Bullish Engulfing pattern on the 1-hour chart, a widely followed technical indicator that often signals a potential upward reversal. This pattern emerged after a short consolidation period, indicating renewed buying interest in the stock.

The formation of a strong green candle supported by above-average trading volumes confirmed the strength of this breakout. Notably, trading activity surged by 62% compared to the previous session, reflecting heightened investor participation and renewed confidence.

From a technical perspective, ₹1,363 has emerged as a critical support level. A sustained move above this mark could pave the way for further upside in the near term. However, a decisive break below this level may weaken the bullish outlook and trigger renewed selling pressure. Traders and short-term investors are therefore closely monitoring price behavior around this zone.

Moving Averages Confirm Strengthening Trend

Technical indicators continue to reinforce the positive momentum in Reliance Industries shares. On the 1-hour timeframe, the 5-day moving average has crossed above the 9-day moving average, a classic bullish crossover that often signals improving price strength.

Such crossovers are widely tracked by traders as early indicators of trend reversals. This development suggests that buying pressure is gradually overpowering selling activity, increasing the probability of sustained upward movement if volumes remain supportive.

In addition, the Price Volume Trend (PVT) indicator confirms the ongoing uptrend. The sharp rise in buying volumes on the daily chart highlights genuine accumulation rather than short-term speculative trades, further strengthening the bullish case.

Volume Surge Reflects Rising Investor Confidence

Investor participation has increased significantly, as reflected in the delivery volume data. On 29 January, delivery volumes rose by 3.24% compared to the five-day average, indicating higher investor conviction.

Moreover, liquidity in the stock remains robust, capable of supporting trade sizes of up to ₹3.31 crore based on 2% of the five-day average traded value. This level of liquidity makes Reliance Industries an attractive choice for both institutional investors and high-volume retail traders.

A particularly notable development was seen on 27 January, when delivery volumes surged by 155.46% to 1.99 crore shares, compared to the five-day average. This substantial rise in delivery-based buying underscores a growing belief among investors that the stock may be approaching a meaningful recovery phase.

Short-Term Rebound After Recent Weakness

Despite the recent bullish signals, Reliance Industries has experienced moderate weakness in its broader trend. Over the past month, the stock price has declined by 12.83%, reflecting sustained selling pressure. Over the last six months, the stock is down 1.66%, although it remains up 11.41% year-on-year, highlighting its long-term growth potential.

During the latest trading session, the stock touched an intraday high of ₹1,409.9, marking a 2.13% gain. This move signals a tentative trend reversal following three consecutive sessions of decline.

However, the stock continues to trade below its 20-day, 50-day, 100-day, and 200-day moving averages, suggesting that the broader medium- to long-term trend remains under pressure. A sustained breakout above these levels will be critical to confirm a more durable bullish reversal.

Relative Performance vs Sector Peers

In recent sessions, Reliance Industries has underperformed its Oil Exploration and Refinery sector peers. On 27 January 2026, the stock posted a 1-day return of 1.26%, compared to the sector’s 2.41% gain.

This underperformance indicates that while the stock is attempting a recovery, sector-wide momentum remains stronger. Investors will closely monitor whether Reliance can outperform peers in upcoming sessions, particularly as technical indicators suggest improving price strength.

Market Impact and Trading Strategy Outlook

From a technical trading perspective, Bullish Engulfing patterns typically set targets near the nearest overhead resistance levels. Traders often trail profits as prices move higher, booking partial or full gains near resistance zones while monitoring volume and follow-through strength.

Sustained volume expansion will be crucial to support any continued upside. If buying volumes start to fade, it could indicate early signs of exhaustion, prompting short-term traders to lock in profits.

For positional investors, confirmation of a trend reversal above key resistance levels and long-term moving averages would strengthen the case for fresh accumulation. Until then, cautious optimism remains the preferred approach.

About Reliance Industries Ltd

Reliance Industries Ltd is one of India’s largest and most diversified multinational conglomerates, with operations spanning energy, digital services, and retail. Its core business segments include Oil to Chemicals (O2C), Exploration and Production (E&P), and high-growth consumer-facing ventures such as Jio Platforms, Reliance Retail, and FMCG operations.

The company is also making strategic investments in New Energy initiatives, including integrated solar manufacturing facilities and battery gigafactories. These projects align with India’s renewable energy goals and position Reliance as a major player in the global clean energy transition.

With its diversified revenue streams, strong balance sheet, and aggressive expansion into future-focused industries, Reliance Industries remains a key stock to watch for both domestic and international investors.

Conclusion

Reliance Industries Ltd is showing early signs of a bullish reversal, supported by a 62% surge in trading volume, positive chart patterns, and improving technical indicators. While the broader trend remains under pressure, rising delivery volumes and increasing investor participation suggest growing confidence in the stock’s near-term recovery potential.

For investors, sustained price strength above key technical levels, supported by strong volumes, will be critical to confirm a lasting uptrend. Until then, Reliance Industries continues to offer an interesting opportunity for traders and long-term investors closely tracking India’s evolving market dynamics.

Disclaimer

The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice