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Reliance (RIL) Stock Analysis-07Feb2020

Reliance Industries Ltd (RIL) is the top weight stock in Nifty50 index. Reliance had a sharp correction after declaring best ever quarterly results on 19 Jan 2020. That correction also impacted Nifty, but this week saw good recovery in Reliance from oversold levels, and it also helped in recovery of Nifty50 index.

One of the technical reasons for the sharp correction in Reliance (RIL) stock is that it made a triple top at 1600 and that was a strong bearish setup with significant penalty. Most stocks would have corrected a lot more than Reliance on such a setup.

This week, Reliance recovered from a low of 1363 to a high of 1467. The 50 day SMA is at 1525, and 10 day SMA is at 1434.  Today Reliance stock has closed at 1432. We can expect the Reliance (RIL) stock to continue recovery till 1480-1500 levels.

A retest of 1400 level is also possible in the coming week, before moving up towards 1480-1500 level. Traders can stay long with 1390 as stop loss. 1363 is the absolute stop loss on all long trades. However, around 1500 level, there will be significant resistance or selling pressure.

Please note that below 1363, new downside till 1300-1260 will open up immediately. Our Reliance Stock Trading Strategy is to stay long above 1363 for target of 1480 and 1500.

If you trade Reliance stock in a larger way, either in shares or futures, please contact us for partnership opportunities. This is our long term core portfolio stock, which has given us consistent gains. Thanks.

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Indian Equity Market Update – 04Feb2020

Mumbai, 04 Feb 2020. Key equity benchmarks on NSE and BSE ended with robust gains today, supported by steep slide in crude oil prices and positive global shares – after the sharp sell off on Budget Day on Saturday, 01 Feb 2020.

Nifty50 index gained 271 points to 11,979.
BSE Sensex gained 917 points to 40,789.

Market breadth was tilted towards buyers. On the BSE, 1564 shares rose and 856 shares fell. In Nifty 50 index, 45 stocks advanced while 5 stocks declined. Fitch Ratings on Monday said India is expected to clock a GDP growth of 5.6% in the next financial year, as Budget 2020 has not “materially altered” its view on the country’s growth outlook.

The Economic Survey of India released by the government last week projected India’s growth rate at 6-6.5% for FY21. NMDC (up 6.16%), Jindal Steel & Power (up 5.35%), Hindustan Copper (up 4.61%), Hindalco Industries (up 4.24%), SAIL (up 4.02%), Tata Steel (up 3.65%), Vedanta (up 3.24%), JSW Steel (up 2.74%), National Aluminium Company (up 2.04%) and Hindustan Zinc (up 1.93%) advanced. Titan Company jumped 7.59% to Rs 1276.

Reliance Industries gained 2.86% to Rs 1425. L&T advanced 0.56% to Rs 1293.95. Bajaj Auto slipped 4.09% to Rs 3155. TCS was up 0.18% to Rs 2107. Honeywell Automation jumped 14.40% to Rs 31785. PNB fell 1.05% to Rs 56.75. Shriram Transport Finance Company surged 6.58% to Rs 1051.65. Sun Pharmaceuticals advanced 2.06% to Rs 426.10. GlaxoSmithKline Pharmaceuticals crashed 11.71% to Rs 1454.60.

In the US data on the manufacturing sector from the Institute for Supply Management, the purchasing manager’s index rose to a six-month high of 50.9% in January. Media reports showed that OPEC members are planning an emergency meeting for discussing large production cut. The outbreak of the Coronavirus and China’s efforts to stop the spread mean the economy will grow slower this quarter than first thought, according to economists.

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Reliance Stock Analysis-24Dec2019

Reliance (RIL) stock closed today at 1546. Today, 24 Dec 2019, the stock has broken its uptrend, which started on 20 Sep 2019. So the Reliance stock has broken its uptrend after 3 months, moving up from 1240 to 1560, in this period, and also taking Nifty50 index to new lifetime high in the same timeframe, because Reliance currently has the largest weight of approximately 10.50% in Nifty50 index.

The immediate lower support is at 1500, which is the 50 day simple moving average. That will be a key level to watch and defend, because if the stock can bounce back up from there, it can make new highs in coming months. However, if Reliance stock breaks downs below 1500, then further correction will follow immediately, and the supports are at 1440 and 1400 level. The path taken by Reliance in Jan-Feb 2020 will also impact the direction of Nifty50 index.

If you are interested in trading Reliance (RIL) stock or futures, ongoing basis, please contact us for our specific service for this purpose.  You can also use the Alpha Stock Trading Course to capture all major uptrends in Reliance or any stock or index.