Reliance Share Price Falls 5% for Second Straight Day: Should Investors Buy the Dip?

Reliance Industries Limited (RIL) witnessed a sharp decline in its share price for the second consecutive trading session. On Tuesday, January 6, the reliance share price fell nearly 5% during morning trade on the BSE.

The stock opened at ₹1,575.55 compared to its previous close of ₹1,577.45 and slipped as much as 5.1% to an intraday low of ₹1,497.05, raising concerns among investors.

Why Is Reliance Share Falling Today?

The recent fall in the reliance share price is largely attributed to escalating geopolitical tensions between the US and Venezuela. Over the weekend, the US reportedly attacked Venezuela, one of the world’s major oil-producing nations, and captured its President, Nicolas Maduro, along with his wife.

Venezuela is believed to hold the largest known oil reserves globally. Market participants fear that prolonged conflict could lead to sharp volatility in crude oil prices, potentially impacting oil refiners like Reliance Industries.

Reliance Refutes Reports on Russian Oil Supply

Amid rumours surrounding crude oil procurement, Reliance Industries clarified that reports claiming three vessels carrying Russian oil were heading to its Jamnagar refinery are incorrect.

In a post on social media platform X, the company called the reports “blatantly untrue,” stating that it has neither received Russian oil cargo in the past three weeks nor expects any deliveries in January.

Reliance Share Price Performance vs Sensex

Despite the current correction, reliance industries share price has delivered strong returns in 2025. The stock has gained over 29% in 2025, significantly outperforming the Sensex, which rose around 9% during the same period.

The stock recently touched an all-time high of ₹1,611.20 on January 5 before entering the current phase of profit booking.

Expert Opinion: Is the Fall Temporary?

According to Seema Srivastava, Senior Research Analyst at SMC Global Securities, the US–Venezuela crisis is a short-term sentiment-driven headwind rather than a structural concern.

She explained that Reliance’s diversified business model—especially Jio and Retail—remains insulated from crude oil price volatility. Rising crude prices may even benefit complex refiners like Reliance due to favourable heavy sour crude differentials.

She further noted that disruptions in Venezuelan exports could support refining and marketing margins globally, while Reliance’s integrated operations provide partial insulation to petrochemical margins.

Brokerage View: Buy on Dips?

Ajit Mishra, SVP of Research at Religare Broking, remains bullish on the stock and has issued a buy recommendation with a long-term target price of ₹1,625.

He believes short-term volatility due to news flow is inevitable, but mild corrections offer attractive buying opportunities for long-term investors. Mishra expects gradual recovery in the O2C segment and sees strong growth momentum in Jio, driven by rising penetration, improving ARPU, and higher customer engagement.

Fundamental View: No Change in Core Business

Abhinav Tiwari, Research Analyst at Bonanza, stated that the correction in ril share price is sentiment-driven, not earnings-driven.

He highlighted that there has been no change in refinery operations, margins, cash flows, or crude procurement strategy. Strong cash generation from O2C, steady growth in Jio and Retail, and long-term potential from new energy and digital infrastructure remain intact.

According to him, unless further geopolitical or regulatory risks emerge, the current fall should be viewed as near-term volatility rather than a deterioration in fundamentals.

Technical Analysis: Key Support and Resistance Levels

From a technical perspective, Pravesh Gour, Senior Technical Analyst at Swastika Investmart, noted that Reliance failed to sustain above the ₹1,600–1,620 zone.

The stock closed near ₹1,523, slipping below short-term moving averages (9-DMA and 20-DMA) and testing the rising 50-DMA, which currently acts as immediate support.

• Support zone: ₹1,520–1,530
• Next downside: ₹1,480–1,460 (100-DMA)
• Resistance: ₹1,570–1,590

Fresh strength is likely only if the stock moves above resistance levels with strong volumes.

Conclusion: Is Reliance Share a Buy?

While technical indicators suggest short-term volatility, the overall fundamentals of Reliance Industries remain strong. Most experts agree that the recent fall in reliance share price is driven by external sentiment rather than business weakness.

For long-term investors, market corrections like these may present an opportunity rather than a risk.

Disclaimer: This content is for educational purposes only. Stockart is a SEBI-registered stock broker. This does not constitute investment advice or a recommendation. Please consult a SEBI-registered investment advisor before investing.