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RIL reversed downward with a giant engulfing candle formation in the daily chart. The high volumes recorded on this day make it a key reversal day.

The stock is halting at the key short-term support at Rs 1,150. Penetration of this level will drag the stock to its October 27 low once again. Resistances for the week would be at Rs 1,292 and then Rs 1,376. Fresh shorts can be initiated on a downward reversal from either of these levels.

Key medium-term support exists at the long-term trendline at Rs 970 and subsequent support is at Rs 806. The stock could be volatile in the band between Rs 950 and Rs 1,500 for a few weeks before it makes a decisive move in either direction.

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