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RIL failed to move past Rs 2,250 last week and declined to an intra-week low at Rs 1,991 instead. This stock has completed a five-wave move from the Rs 2,706 peak.

We consider the current sideways move between Rs 2,000 and Rs 2,250 as a halt before the third part of the move from Rs 2,706 drags the stock lower to Rs 1,814 or Rs 1,538 over the medium-term. The medium-term outlook will turn positive only on a rally above Rs 2,420. For the short-term, RIL can remain in the band between Rs 2,000 and Rs 2,250. The downward momentum will accelerate on a close below Rs 2,000. Momentum indicators imply that the stock can decline further in the near-term. Traders can short the stock in rallies with a stop at Rs 2,260.

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