Reliance Infrastructure's Remarkable Stock Performance

Shares of Anil Ambani-led Reliance Infrastructure have seen an impressive 101% return over the last 12 months. This surge is attributed to significant debt reduction, a three-level improvement in credit rating, and positive developments in the infrastructure sector.

Technical Analysis and Future Projections

Technical experts suggest the stock could reach Rs 500, provided the current momentum and positive catalysts continue. The stock's performance is bolstered by its position above all significant simple moving averages, indicating a strong upward trend across various timeframes.

Is the Rally Sustainable?

Market observers are optimistic, citing positive technical indicators and strengthening business metrics. However, they caution about potential market fluctuations and resistance points that could affect investor sentiment in the short term.

Financial Recovery and Strategic Moves

Reliance Infrastructure's credit rating upgrade from 'IND D' to 'IND B/Stable/IND A4' marks a significant turnaround, reflecting the company's efforts in deleveraging and achieving a net zero debt position. Additionally, securing a Rs 5,000 crore defense contract highlights the company's strategic expansion and diversification.

Investor Guidance

Experts advise short-term traders to watch for a confirmed breakthrough above Rs 400 or a retreat to support levels between Rs 365-380 for potential entry points. The broader range is seen between Rs 340–Rs 420, with sustained moves above Rs 420 potentially opening the path to Rs 500.