RIL Stock Crashes Below 200-DMA Amid Muted Results, Key Levels Tested

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AuthorKavya Nair|Published at:
RIL Stock Crashes Below 200-DMA Amid Muted Results, Key Levels Tested
Overview

Reliance Industries stock fell 3.6% on Monday, breaching its 200-day moving average for the first time in nine months. The decline followed muted Q3FY26 earnings, with net profit growth of just 0.6% year-on-year, despite a 10.5% revenue rise. Reliance Retail's weaker performance affected EBITDA. Most brokerages reiterated 'BUY' ratings with targets up to ₹1,750.

Technical Breakdown After Earnings Wobble

The sell-off below the crucial 200-day moving average (200-DMA) marked a significant technical breach for Reliance Industries (RIL) stock. This is the first time since April 28, 2025, that the shares have fallen below this long-term support level. The decline saw RIL hit an intra-day low of ₹1,406.30 on the NSE, shedding 3.6% in Monday's trading session.

Q3FY26 Performance Metrics

Reliance Industries reported consolidated net profit of ₹18,645 crore for the quarter ended December 2025, a marginal 0.6% year-on-year increase from ₹18,540 crore in Q3FY25. While revenue showed stronger growth of 10.5% year-on-year to ₹2,69,496 crore, the company's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) remained flat sequentially. This performance was partly attributed to a weaker showing from Reliance Retail.

Management Outlook and Brokerage Views

Despite near-term growth concerns, RIL's management expressed confidence in achieving double-digit revenue growth for its retail segment. Most financial analysts remain optimistic, reiterating 'BUY' recommendations. Price targets from these brokerages range between ₹1,730 and ₹1,750, suggesting a potential upside from current levels.

Recent Stock Performance and Chart Analysis

The stock has experienced a sharp correction, plunging nearly 13% from its record high of ₹1,611.80 reached on January 5, 2026, within just nine trading sessions. The breach of the 200-DMA at ₹1,432 (as of Monday) follows the earlier breakout on April 28, 2025, which had spurred a rally of over 21%. The stock is now trading below its 20-day (₹1,522), 50-day (₹1,530), and 100-day (₹1,468) moving averages, signalling short to medium-term bearishness.

On the weekly chart, RIL is now below its 20-week moving average (20-WMA) at ₹1,477 for the second consecutive week. It is currently hovering around the 50- and 100-week moving averages, which converge near ₹1,402. The 200-week moving average (200-WMA) at ₹1,318, last tested in April 2025, is a key long-term support.

The monthly chart reveals the stock is testing the 20-month moving average (20-MMA) at ₹1,399. Below this lies the 50-MMA at ₹1,314. The stock has maintained its trend above the Supertrend indicator (currently at ₹1,185), which it has held since May 2014, indicating resilience in the long-term uptrend despite recent volatility.

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