Reliance Industires slid gently in the first four sessions of the week to the intra-week low of Rs 1,924 before reversing on Friday afternoon to reduce the weekly loss to 4 per cent. The short-term trend, however, continues to be indecisive since the stock has not yet broken out of the trading range between Rs 1,900 and Rs 2,100. Break-out above Rs 2,100 will take RIL to the next target of Rs 2,200.
As we have been reiterating, the medium-term view remains one of caution as long as the stock trades below Rs 2,200. Decline below Rs 1,900 will imply the onset of the third leg of the down-move from the May 19 peak that has the targets of Rs 1,708 or Rs 1,530.
Text & Image: Business Line