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RIL (₹1,025)
The stock was volatile in the previous week and closed almost on a flat note. It formed a doji candlestick pattern in the weekly chart by marking an intra-week low and high at ₹1,002 and ₹1,067 respectively, indicating neutral stance. After testing the key resistance at ₹1,050, the stock slumped 2 per cent on Friday. With this fall, the moving average convergence divergence indicator in the daily chart signals a sell. Further, other indicators in the daily chart have started trending down, implying weakness. Hence, traders with a short-term horizon need to stay alert and initiate fresh short position if the stock fails to rally above ₹1,050 with this level as a stop-loss. Should the decline continue, it can test support at ₹1,000. A tumble below this base level will weaken the stock further and drag it further down to ₹985. The medium-term uptrend will be in place as long as the stock trades above the ₹940-₹950 band.
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