Reliance Industries moved in line with our expectation last week to an intra-week peak at Rs 1,414 but was unable to penetrate this level.
As explained last week, the area around Rs 1,400 is a strong resistance for the short-term. If this area is crossed, the stock can move to Rs 1,500. However, daily momentum indicators are weak and short-term traders should desist from fresh short positions on a decline below Rs 1,280.
The medium-term view for the stock is neutral. Investors ought to exercise caution since it is nearing the upper band of its medium-term range between Rs 1,000 and Rs 1,500.