RIL (₹1,075.65)
RIL surged 3 per cent last week and is gaining strength. The stock tested a key resistance around ₹1,090 last week, but failed to breach it. A retest of the same hurdle is likely this week. What happens after the stock tests ₹1,090 levels will be crucial in deciding the next trend for RIL. The inability to break above ₹1,090 and a reversal from there will increase the possibility of a corrective fall to ₹1,030 and ₹1,010 once again. But a strong break above ₹1,090 can take the stock higher to ₹1,125 initially. Further break above ₹1,125 will see the upmove extending to ₹1,150 over the short term. Such a strong rally above ₹1,100 will signal a major trend shift in the stock. It will increase the possibility of a rise to test the crucial resistance at ₹1,200 and ₹1,220. A strong break above ₹1,220 will confirm the start of a structural long-term uptrend in RIL after many years of sideways movement. The price action in the stock over the next few weeks will need a close watch.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.