A TECHNICAL UPDATE ON RELIANCE INDUSTRIES LTD—27.3.2023.

 

RELIANCE INDUSTRIES LTD

Open—2245.25--High—2250--Low—2198--Close—2203.30 on 24.3.2023.

Support:2180/2153.55/2120/2066/2044/2016.25/1994.95/1906/1895/1892/1876.70/1855.25/1835/1830/1798/1695/1618/1609.

Resistance:2274.90/2291.45/2305/2311/2313/2343/2370/2424.60/2463.80/2480/2493/2502/2525.70/2547.20/2550/2567/2606/2615.90/2638.95/2677/2688/2755/2817.35/2856.15

 (Bold and underlined figures are most important)

FOR TRADERS

The overall technical setup is very weak and it is into deep corrective mode as it is way below its threshold point of 2388.75, it is into bear market territory as it is below its threshold point of 2285, furthermore it is well below its long term moving averages on the daily chart and below some on the weekly chart also and last but not least almost all important technical indicators are negative on the daily, weekly & monthly chart as of now pointing that it could break 1850 levels in coming weeks/months, all these developments together is highly concerning and can surely drag it down further from here. But please note it has a very strong support at 2180 ,so the chances are that it may bounce back from this point may be couple of time but breaking this support point looks inevitable in coming days as of now. Kindly note that sustained break below 2180 on the closing basis may accelerate the fall.

Since it is in deep corrective mode therefore for general or safe traders, it is suggested that sell on the rise or sell on the price breakdown strategy should be adopted till correction completion sign emerges. However aggressive traders can try long trade near 2180 with a stop loss of 2165 or on decline near its critical support points (see support point as mentioned above) with self defined stop loss for pullback gains. Please be alert in long trade initiated for pullback gains.

FOR INVESTORS

Kindly note that it is a good pedigree stock and one can get these types of stock cheaper only when they are technically weak. It is therefore suggested to accumulate the stock in a staggered manner on every deep decline day with time horizon of 3-5 years for decent gains. Moving down the good buying points or range could be at 2180/ 2070—2000/1830----1610/1350--1270. For example one can initiate buying with 15% of the designated investment amount for the stock near 2180, 20%in the range of 2070---2000 and so on ; it is suggested to increase the buying % on a very steep decline. It is important to mention here that as of now the range of 1830---1610 seems to be the worst price range for the stock on decline, but if it fall further and break 1270 and sustain then it could come down to 900 or lower ,which may please be noted. Therefore it is suggested to structure your investment with due caution.

NOTE: - It is a technical assessment of the stock as of now, the technical interpretation changes with the price movement and time; therefore it needs periodic updating, which may please be noted.

Disclaimer:-The view expressed here are solely of the author and he is not at all responsible in any way for the outcome of the trade you enter based on the above view.

Kindly note that make your cost your stop loss in favorable trade and then trail it as the price move up/down to gain maximum profit and avoid losses. Use support and resistance levels as entry, exit, target and trailing stop loss points. DO NOT TRADE WITHOUT STOP LOSS.

Note: Price stated here are of spot market.

                          Contact me for strategic guidance to enter and exit trade.

 Thanks 

Narendra Kumar Surana

suranank@gmail.com

Mobile—8240951127/9831313654.