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RIL (₹1025.7)
RIL plummeted 6 per cent last week. This fall has wiped out all the gains made over the previous five weeks. The 200-day moving average around ₹1,021 and a trend line support at ₹1,015 are the key levels to watch. Whether the stock breaks below these supports or reverses higher from there will be key in deciding its next leg of movement . A higher reversal from ₹1,021 or ₹1,015 can ease the downside pressure. Such a bounce can take it to ₹1,050. Further decisive break above ₹1,050 see a test of₹1,100 thereafter. On the other hand, if RIL breaks below ₹1,015, it can fall to ₹1,000 or ₹985. The 100-week moving average around ₹975 will be a key support to watch. A break below it can drag RIL to ₹950 levels. But the price action between November and December suggests that the stock has formed a strong base between ₹980 and ₹1,010. This leaves a higher possibility of a higher reversal from the ₹1,021-₹1,015 support zone. As such, medium-term investors hold their long positions and retain the stop-loss at ₹1,010.
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