Technical Analysis

RIL gears up for further rally

GURUMURTHY K | Updated on March 09, 2018 Published on April 23, 2017

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RIL (₹1,399.75)

RIL reversed higher to close 2.6 per cent up last week. Though the weekly chart suggests a range-bound move between ₹1,350 and ₹1,425, the daily charts are bullish. The price action on the daily chart in the past weeks suggests that the stock is turning around after falling from the high of ₹1,448 made in the first week of this month. The stock is more likely to rise to ₹1,430. A strong break and a decisive weekly close above ₹1,430 will increase the likelihood of the stock breaking above ₹1,450. A decisive break above ₹1,450 will pave way for the next targets of ₹1,550 and ₹1,600. Investors can hold the long positions and retain the stop-loss at ₹1,215. Revise the stop-loss higher to ₹1,320 as soon as the stock moves up to ₹1,550. The short-term view will turn negative only if the stock breaks below the 21-day moving average support at ₹1,340. The ensuing target on such a break will be ₹1,300. But on the charts, a break below ₹1,340 looks unlikely. Also, the stock is likely to find fresh buyers on every dip.

Published on April 23, 2017
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