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The stock rules at a crucial level. A close above ₹975 will change the medium-term outlook positive. In such an event, Reliance Industries can touch ₹1,090. But in the near term, the stock finds immediate resistance at ₹937. A failure to breach this level can drag the stock down to its support at ₹896 and ₹872 . But the crucial support is poised at ₹831 and a close below this level will change the outlook into negative.
F&O pointers: The current month futures shed open interest despite gains in the underlying price. RIL March futures saw huge accumulation of open interests. Option trading indicates a narrow range as both calls and puts shed open positions.
Strategy: Traders can consider the following two strategies. One, investors with a high risk appetite can consider going long on Reliance Industries, with a stop-loss at ₹896 for an initial target of ₹975. Traders with an even higher risk-taking ability can hold their position if RIL moves past ₹975 by shifting the stop loss to ₹975.
Risk-averse traders can consider buying 960 March call. The option closed with a premium of ₹25. The maximum loss in the strategy could be the premium paid, that is, ₹6,250 (25*250). Traders can exit the position if the premium hits either ₹75 or ₹5.
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