Technical Analysis

Reliance Capital (₹128.3): Buy

Yoganand D BL Research Bureau | Updated on May 22, 2019 Published on May 23, 2019

Investors with a short-term perspective can buy Reliance Capital at current levels. Following a sharp fall in early February, the stock found support at around ₹107. Failing to surpass the key resistance at ₹200, the stock once again started to decline in March, But, medium-term support in the band between ₹103 and ₹108, has started cushioning the stock from falling further.

Subsequently, the stock began to trend upwards triggered by positive divergence in the daily relative strength index and price rate of change indicator. The stock gained 5.5 per cent on Wednesday witnessing bullish momentum.

The daily RSI has entered the neutral region from the bearish zone and the weekly RSI is recovering from the oversold territory. Moreover, there has been an increase in daily volume since late April. The daily price rate of change indicator has entered the positive terrain implying buying interest.

Taking a contrarian stance, the short-term outlook is positive for the stock. Targets are ₹133.5 and ₹137. Traders can buy the stock with a stop-loss at ₹125.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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