Reliance Industries witnessed a volatile trading week and closed with Rs 38 gain. The stock has been in a narrow range between Rs 1,900 and Rs 2,100 over the last four weeks and there is a possibility of an upward break-out that takes the stock to Rs 2,200. The medium-term trend in the stock is down since the peak formed on May 22 and we continue to advise caution as long as the stock trades below Rs 2,200.
Reversal below this level can take the stock to Rs 1,645 or Rs 1,530.
The near-term trend in the stock is however up and it can attempt to move higher to Rs 2,123 or Rs 2,200. Fresh purchases should be avoided if RIL fails to close above Rs 2050 in the early part of next week.
Text & Images: Business Line