ewsba.se
Mukesh Ambani-led Reliance Industries-backed Alok Industries shares jumped 8.5% on Wednesday to ₹8.50 apiece, extending their gains to the third consecutive trading session. The textile stock has gained more than 20% over the three sessions, despite remaining sharply lower across longer timeframes.
Alok Industries shares have gained 15% in one week and 8% in one month. However, the stock has declined 36% in three months, 36% in six months, 53% in one year and 66% in five years.
The stock hit a 52-week high of ₹18.46 in October last year, while its 52-week low of ₹6.92 was recorded earlier this month on October 1.
Alok Industries is a vertically integrated textile manufacturer with a presence across the cotton and polyester value chains. Based in Dhirubhai Ambani Knowledge City, Navi Mumbai, the company currently operates under the Reliance Industries group.
Reliance Industries Limited holds an unchanged 40.01% equity stake in Alok Industries, amounting to 1,98,65,33,333 equity shares. The remaining 28.07% equity is distributed among public retail investors, foreign institutional investors and domestic institutional investors.
Alok Industries’ recent rebound has improved short-term momentum, but technical analysts continue to see a weak broader trend. The stock remains below key long-term moving averages, making the ₹10 level and the ₹7- ₹7.20 zone important for the next move.
KKunal V Parar, VP of Technical Research and Algo, said Alok Industries remained in a prolonged bearish trend and was trading well below its 200-DMA and 200-WMA. However, the stock had recently found buying interest around the ₹7- ₹7.20 zone.
“The weekly RSI had slipped into the oversold region and has now started recovering, suggesting that selling momentum may be losing some strength. On the daily chart as well, RSI witnessed a sharp recovery from deeply oversold levels.”
Parar said the daily RSI had moved back above 50, signalling improving near-term momentum. The stock had also formed a base around ₹7- ₹7.50, but remained considerably below its 200-DMA near ₹12.75- ₹13.00, making the current move a short-term recovery attempt rather than a confirmed reversal.
He identified ₹10 as the first important resistance. A sustained move above it could open room towards the ₹12.75- ₹13.00 200-DMA zone. On the downside, ₹7- ₹7.20 remained crucial support, while a decisive break below ₹7 could resume the broader bearish trend. Parar’s technical bias remained a short-term recovery attempt, with a sustained breakout above ₹9.75- ₹10 required for stronger reversal confirmation.
Mayank Jain, Market Analyst at Share.Market by PhonePe, said the stock showed signs of short-term stabilisation following an extended multi-year decline, with the price gradually moving towards a major structural base near the ₹7 region.
“From a technical perspective on the daily chart, the stock registered a daily gain of 5.75% (+0.45 points) to close at 8.28, accompanied by a trading volume of 46.58 million shares.”
Jain said the move pushed the stock slightly above its 20-day Simple Moving Average of ₹7.37. However, it remained below the 50-day SMA at ₹9.44 and 200-day SMA at ₹12.75, leaving several resistance barriers overhead.
“Immediate overhead resistance sits near the 50-day moving average level of 9.44, followed by a secondary resistance barrier around the 200-day moving average at 12.75. A sustained move above these trendlines would be required to signal a broader structural trend reversal.”
On the downside, Jain identified the recent consolidation base between ₹7.30 and ₹7.95 as immediate dynamic support.
Alok Industries’ consolidated net loss narrowed to ₹138.25 crore in Q1 from ₹171.56 crore in the corresponding quarter last year. Revenue from operations increased 6.5% YoY to ₹993.11 crore, while total expenses rose 1.49% YoY to ₹1,153.45 crore. However, the cost of materials consumed surged nearly 18% YoY to ₹538.86 crore.
On a standalone basis, the company’s net loss declined to ₹136.20 crore from ₹176.48 crore a year ago. Standalone revenue from operations grew 5.81% YoY to ₹935.94 crore.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Pranati Deva is a seasoned financial journalist with over a decade of experience in high-pressure newsroom environments, currently working as a Senior Sub Editor at LiveMint. Over the years, she has developed a reputation for sharp editorial judgement, a strong grasp of market dynamics, and the ability to translate complex financial developments into clear, engaging stories for a wide audience. <br><br> Her core areas of coverage include stock markets, leading listed companies, currencies, and commodities, with a particular strength in fast-paced, real-time market reporting. She is known for handling breaking market news, earnings-driven stock movements, and macroeconomic developments with speed, accuracy, and context—qualities that are essential in financial journalism. <br><br> Pranati has built a diverse and credible professional track record across some of India’s most respected news organisations, including MintGenie, CNBC-TV18, Business Standard and EconomicTimes.com. During her stints at these platforms, she produced data-driven market stories, curated and steered live blogs during volatile trading sessions, and conducted interviews with market veterans, fund managers, economists, and industry experts. Her work often combines on-ground reporting with analytical depth, helping readers make sense of daily market fluctuations and longer-term trends. An alumnus of the Symbiosis Institute of Media and Communications and Hansraj College, University of Delhi, Pranati brings a strong academic foundation to her journalism. She specialises in real-time financial reporting, with a keen focus on precision, balance, and insight, aiming to decode market movements in a way that is both informative and accessible to readers across experience levels.
Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.