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.