Reliance Industries Limited (RIL) shares have experienced a notable decline of nearly 7% since the company announced its stronger-than-expected quarterly earnings. This downward trend comes despite positive coverage from multiple brokerage firms.

Stock Performance and Technical Analysis

The RIL stock is currently trading at Rs 1,384.00, hovering near key support levels of Rs 1,380.00-Rs 1,375.00. Technical analysts have pointed out that the stock is in oversold territory, with the Relative Strength Index (RSI) at 36.88. However, they caution that if the current support levels break, there could be a potential further decline to Rs 1,300.00-Rs 1,320.00.

Q1 Financial Performance

RIL reported a substantial 78% year-on-year increase in consolidated net profit to Rs 26,994.00 crore for the first quarter. This impressive growth was primarily driven by a one-time gain of Rs 8,924.00 crore from the sale of its stake in Asian Paints. The company's revenue from operations also saw a 5.3% rise, reaching Rs 2,48,660.00 crore.

Brokerage Outlook

Despite the recent stock price decline, multiple brokerages maintain a positive outlook on RIL:

• Macquarie
• Morgan Stanley
• Motilal Oswal
• Nuvama

These firms have reiterated their positive ratings on RIL, with price targets ranging from Rs 1,500.00 to Rs 1,767.00.

Upcoming Annual General Meeting

Investors are now turning their attention to RIL's upcoming Annual General Meeting (AGM) scheduled for August 29. The AGM is expected to provide crucial updates on several key areas:

1. The company's 2030 business doubling target
2. Progress in the new energy business
3. IPO timelines for Jio and retail units
4. Retail business growth
5. Petrochemical expansion plans

Recent Corporate Actions

According to the LODR data, RIL has recently published a notice regarding a special window for re-lodgement of transfer requests for physical shares. This initiative is in line with SEBI regulations and aims to facilitate the transfer process for shareholders who had lodged their transfer deeds prior to April 1, 2019, but were rejected due to document deficiencies.

The company has advised eligible shareholders to contact their Registrar and Transfer Agent, KFin Technologies Limited, for availing this opportunity. This move demonstrates RIL's commitment to enhancing shareholder services and complying with regulatory requirements.

Diversification Strategy

In a recent development, Reliance has purchased two fuel oil cargoes from HPCL as part of its strategy to diversify away from Russian oil. This move represents the company's effort to reduce its reliance on Russian oil supplies by sourcing from domestic suppliers. This strategic decision aligns with the company's broader goal of adapting to changing global energy dynamics and ensuring a more diverse and stable supply chain.

As RIL navigates through recent stock volatility, investors will be keenly watching the upcoming AGM for strategic insights and future growth plans. The company's strong Q1 performance, positive brokerage outlook, and recent diversification efforts suggest potential for recovery, but market sentiment remains cautious in the short term.

Market expert Neeraj Dewan has expressed optimism about the fertiliser sector's prospects in the coming months, while also highlighting expectations for Reliance Industries 's upcoming Annual General Meeting (AGM).

Fertiliser Sector Outlook

Dewan predicts a positive trend in the fertiliser sector over the next six to nine months, citing several factors:

• Favorable monsoon conditions
• Industry consolidation
• Attractive valuations following significant corrections

He points out that companies like Gujarat State Fertilizers & Chemicals (GSFC) have undergone substantial consolidation. Many firms in the sector are actively pursuing capacity expansion and introducing new products to strengthen their market position.

However, Dewan also raises a note of caution regarding the sector's heavy reliance on government subsidies for revenue, which could pose potential risks.

Housing Sector Slowdown

Shifting focus to the housing and related sectors, Dewan acknowledges a noticeable slowdown in demand, as evidenced by Astral Limited's recent earnings report. He notes:

• The demand deceleration is visible, but it's unclear whether this is a temporary blip or a medium-term trend
• Recent stock corrections in the sector are attributed to previously inflated valuations
• Weak performance numbers from companies like PG Electroplast have contributed to the market sentiment

Anticipation Builds for Reliance AGM

As Reliance Industries' Annual General Meeting approaches, market watchers are keenly awaiting potential announcements. Key areas of interest include:

1. Timeline for Jio's Initial Public Offering (IPO)
2. Outlook for the retail business segment

Dewan highlights the strong performance of Reliance Retail in recent quarters, which has heightened interest in the company's future plans for this division.

The upcoming AGM is expected to provide valuable insights into Reliance's strategic direction, particularly regarding its telecommunications and retail arms, which have become increasingly significant contributors to the conglomerate's overall performance.

As investors and analysts alike await these crucial updates, the market remains attentive to any signals that might shape the future trajectory of one of India's most prominent corporate entities.