Technical Analysis

Reliance Industries hovers above a key base

Yoganand D | Updated on January 24, 2018 Published on March 29, 2015

The stock of Reliance Industries slumped 5 per cent, conclusively breaking the key medium-term support in the band between ₹830 and ₹840. It reached our price target of ₹800 and hovers above this important base level. Traders should take profits off the table from shorting and stay on the sidelines for now. The stock trades well below its 50- and 200-day moving averages. Indicators on the daily chart feature in the bearish zone. Only a conclusive fall below the immediate support level of ₹800 will have further bearish implications and pull the stock down to ₹775 or ₹750 in the medium term. However, a corrective rally can’t be ruled out as the stock trades at significant support levels. It can encounter resistances at ₹820, ₹835 or ₹850. The short-term downtrend will be bearish as long as the stock trades below ₹875. Medium to intermediate-term trend as well will be down below ₹970 levels.



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