Reliance Shares: What to Expect on October 19, 2018 - Market Predictions and Analysis
October 19, 2018 was a significant day for Reliance Industries Limited (RIL). As the results of the quarter 2 were declared, it marked a turning point for share price movements. However, predicting the exact share price can be challenging, mainly due to the complex interplay of various market forces.
Market Sentiment and Opening Trends
The market on that fateful Friday was at a critical juncture. The performance of Reliance shares would largely depend on the market conditions at the beginning of the day. According to industry experts, if the market opened positively, RIL was expected to follow suit, indicating a strong start to the trading session.
In a flat or positive market environment, RIL was anticipated to open on a positive note. This would be crucial for the share price movement, as the first hour of trading often sets the tone for the day. There was speculation that the stock might experience a gap up of up to 5 points by 9:10 AM, which could provide initial support to the share price.
However, the market can be unpredictable, and the share price may experience a drop post 9:30 AM due to profit booking. Nevertheless, if the price falls, it could be an opportunity to buy RIL shares closer to the Wednesday closing price.
External Factors Influencing Reliance Shares
Several external factors could influence the share price of Reliance on October 19, 2018. One of the most significant was the fluctuation in crude oil prices. Crude oil prices had risen, and this increase in input costs could potentially impact the profitability of Reliance Industries, particularly in its petrochemical divisions.
Another pivotal event was Reliance's decision to stop crude oil imports from Iran from November onwards. This action is expected to drive up the cost of crude oil, which could have a direct impact on the overall profitability of the company. The cost implications of such a decision are far-reaching and could influence long-term strategic decisions.
Performance Highlights and Analysis
Despite the potential challenges, Reliance's quarter 2 results were favorable. Several key factors contributed to this success:
Reliance JIO's Good Profit: JIO, which stands for Reliance Jio Infocomm Limited, posted impressive profits after acquiring Hathway and DEN Cable. This acquisition is part of a strategic move to expand its broadband and cable TV networks, positioning itself as a strong competitor in the digital sector. Petrochem Products Margin Hit: Although the margin for petrochemical products was hit, recent price increases have mitigated some of the negative impact. This segment of the business, while vital, faced challenges that required swift action to address and rectify. Reliance Retail's Solid Performance: During the festival season, Reliance Retail posted substantial profits. This performance was driven by increased consumer spending and a well-timed strategy to capitalize on the festive environment.While the results were favorable, the sentiment in the market was cautiously optimistic. The overall performance might not see a drastic increase compared to quarter 1 due to profit booking activities.
Long-Term Investment Perspective
For those considering a long-term investment in Reliance Industries, the stock presents a promising opportunity. Despite short-term fluctuations, the company's fundamental strengths and strategic initiatives position it well for sustained growth. Investors should carefully consider the risks associated with market fluctuations and take appropriate actions to navigate these.
It's worth noting that big traders often employ strategies to mislead investors by manipulating pre-market openings or gaps. Therefore, it's essential to remain vigilant and not be influenced solely by early market movements.
In summary, while the exact share price on October 19, 2018, cannot be predicted with certainty, the overall trend and performance factors indicate a positive outlook for Reliance Shares over the long term.