The rally in the early part of the week helped RIL close with weekly gain of Rs 80 though it was grappling with the resistance around Rs 2,070 in the later part of the week. The stock is poised at key short-term resistance and a weak start to the week can result in a decline to Rs 1,860 or Rs 1,718 in the near-term. If market finds something to cheer about in the first quarter earnings declared late Friday, a rally to Rs 2,125 and Rs 2,200.
We retain a circumspect medium-term outlook for RIL. Inability to move above Rs 2,200 will result in the resumption of medium-term down-trend that can pull RIL lower to Rs 1,530 over the medium-term. Weekly close above Rs 2,200 is needed to mitigate the bearish medium term view.