Reliance shares slide for 3rd day as Oil Ministry raises $2.81 billion demand in gas dispute case

Stock market today: Shares of Indian oil-to-telecom behemoth Reliance Industries (RIL) dipped for the third consecutive session on Tuesday, March 4, and traded close to their 52-week low.

The fall in RIL shares comes after the Ministry of Petroleum and Natural Gas raised a demand of US $2.81 billion on the PSC Contractors, namely Reliance Industries Limited, BP Exploration (Alpha) Limited and NIKO (NECO) Limited.

In an exchange filing on February 14, a division bench at the Delhi High Court ruled against Reliance and its partners in a legal dispute over gas extraction in a deepwater field in India's KG D6 block, located off the eastern coast.

Reliance has been advised by its legal team that the court's decision and the temporary demand for payment are not valid, India's most valuable firm added. The company plans to challenge the ruling and does not expect to face any financial liability from this case.

RIL share price trend

Reliance shares shed over 1% to ₹1159.25 apiece on the BSE today, taking its three-day fall to nearly 4%. In trade on Monday, the stock plummeted to its 52-week low of ₹1,156.

RIL share price has posted a weak performance in the last one year, declining as much as 22% during this period. In the last six months, RIL stock has lost 23%. Meanwhile, it is down 12% in the past three months and 6% in the past one month.

RIL share price outlook

“Reliance Industries has broken below the ₹1,200 level after consolidating for three months, indicating renewed bearish momentum. The stock has slipped beneath key support levels, with the 50-day EMA trending downward, reinforcing the ongoing weakness,” said Ameya Ranadive, Chartered Market Technician, CFTe, Sr Technical Analyst, Stoxbox.

The ADX is rising, suggesting strengthening downside pressure, while the RSI remains below 30, signaling oversold conditions without a clear reversal indication, Ranadive said, adding that MACD remains in negative territory, with a widening histogram reflecting persistent bearish sentiment.

“The breakdown has been accompanied by higher volumes, confirming selling pressure and a shift in market dynamics. The inability to sustain the previous support levels suggests that sellers remain dominant, making it essential to observe the stock’s behavior in the coming sessions. Although oversold conditions could trigger temporary rebounds, the broader trend remains weak unless the stock reclaims previous support-turned-resistance levels,” he added.

A sustained move above ₹1,200, supported by improving momentum indicators, would be required to indicate a potential reversal, Ranadive said. Until then, price action must be monitored closely for signs of stabilization before forming any directional outlook, he advised.

(With inputs from Reuters)

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