The stock of Reliance Industries extended its testing of the key resistance level at ₹900 for the fourth week in a row. In the previous week, the stock fell almost 2 per cent but it still continues to test this resistance. An emphatic breakthrough of ₹900 can reinforce bullish momentum and pave way for a rally to ₹920 and then to ₹940 in the short-term. Traders can wait and go long on such a break with a stop-loss at ₹895. But, a strong downward break of the immediate support at ₹870 can strengthen the downward momentum and pull the stock down to ₹850 levels in the short term. Subsequent important supports are placed at ₹830 and ₹810 levels. Medium-term trend is sideways in a wide band between ₹810 and ₹940. Investors with medium-term perspective should stay cautious.
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