RIL (₹850.1)

The stock of RIL extended its fall and slipped almost 4 per cent last week. With this fall, the stock has conclusively breached its 21- and 50-day moving averages. Now, it is in a downtrend across time frames — intermediate, medium and short term. The stock can test a key medium-term support in the band between ₹830 and ₹840. A decisive fall below this support band will strengthen the downtrend and pull the stock down to ₹820 or ₹800 in the medium term. Both the daily and weekly indicators feature in the bearish territory, implying weakness. Traders with a short-term perspective should tread with caution as long as the support band holds. Only a strong fall below ₹830 will be a cue for initiating fresh short position. Conversely, important resistances are placed at ₹870, ₹900 and ₹920. Investors with a medium-term view should desist trading in the stock.

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