Shares of Reliance Industries Ltd closed 4.29% higher on Friday's trade and was Nifty's biggest gainer.
Shares of the company gained over 3% during Friday's session on the back of heavy buying and overall favourable market sentiment. The benchmark indices, Sensex and Nifty, were up by more than 1%, in line with the strong trend in the global market.
Additionally, the news that the business will demerge its financial services subsidiary, Reliance Strategic Investments, added to the positive sentiment of the stock.
A meeting of Reliance Industries' creditors and shareholders will be convened on May 2, 2023, to discuss and approve the proposed scheme of arrangement between Reliance Industries and Reliance Strategic Investments, according to an exchange filing. The brand name of Reliance Strategic Investments will become Jio Financial Services Limited following the demerger.
According to Nomura, Reliance Industries is making headway towards listing Jio Financial Services, which is anticipated to happen soon. In the upcoming AGM, it also expects the oil-to-telecom conglomerate laying out a strong roadmap for development in the financials sector.
With a target price of ₹2,850, Nomura has recommended 'buy' rating to the stock, indicating a gain of 23.5 % over the stock's current market price.
On the technical front, the stock in Friday's trading session, was the major positive contributor for Nifty.
"We have been mentioning 2,200 as a strong support for Reliance, which is a multi-month low . Today strong traction definitely augurs well for the bulls; expect further positive traction in the near term; 2,400 can be expected whereas 2,200 remains a key support,' said Rajesh Bhosale - Equity Technical and Derivative Analyst" Angel One.
According to MintGenie poll, 31 analysts on an average recommend 'strong buy' for the stock.