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RIL recorded an intra-week peak at Rs 1,668 and closed 22 per cent lower from that level on Friday.

The stock has moved to the long-term support at Rs 1,290, which is at the 61.8 per cent retracement of the entire up-move from the 2002 trough. But the weekly close at the lowest point is a negative and denotes there can be further price erosion next week. Immediate support on the chart is at Rs 1,200 and Rs 1,140.

A close below Rs 1,250 can usher in a decline to the August 2006 trough at Rs 960 or further to Rs 810.

Fresh short positions are, however, recommended only on a move below Rs 1,250. Resistances for the week are at Rs 1,668 and Rs 1,704.

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