Reliance Industries moved sideways in a narrow range before spurting to an intra week peak of Rs 2,304 on Friday. As indicated in our last column, the short-term trend in this stock is down.
Immediate short-term resistance is at Rs 2,346. If the stock fails to move above this level next week, the down-trend from Rs 2,490 will accelerate to pull RIL lower to Rs 2,100 or Rs 1,908. Target above Rs 2,346 is Rs 2,490.
Intermediate-term resistance for the stock continues to be at Rs 2,384 since this is a 61.8 per cent retracement of the down-move from January 2008 peak. Failure to surpass this level will drag RIL lower to Rs 1,900 or Rs 1,500 over the medium term.
Investors should exercise caution until the stock records a strong weekly close above Rs 1,384.
Text & Images: Business Line