Shares of Reliance Industries will be in focus on Friday as the company will announce its fourth quarter results. The estimates by various brokerages see the profitability declining, let down by the mainstay O2C (oil-to-chemicals) business.
Reliance had held its ground this year despite the volatility in markets. The stock gained nearly 6% on a year-to-date basis, which is not bad considering the geopolitical uncertainties.
However, the shares are nowhere near to their highs. After making an all time high around 1603 in July last year, the stock fell into a bear grip to make a low of 1115. The recovery later meant that the price is now 19% away from 52-week highs.
Analysts said the stock is currently moving in the range of 1180-1340 for the last six months, and a breakout on either side will give further 100-150 points rally.
"The stock is currently trading near its resistance level and as the volumes are getting higher we can see breakout on the higher side. At the lower level, whenever stock corrects it takes the support of 200 DMA and gives the pull back. Price is consolidating in this range and once the breakout is done on the higher side we can see a sharp upside move," said Viral Chheda, Sr Analyst, SSJ Finance & Securities.
Key zones to watch out for
In the sideways trade, the support for RIL is placed at Rs 1280 and resistance at Rs 1320. The stock lacks clear directional momentum and is consolidating in a tight band.
"A breakout above Rs 1320 could trigger a short-term rally toward Rs 1345–1360, while a breakdown below Rs 1280 may lead to weakness toward Rs 1250," said Riyank Arora technical analyst at Mehta equities.
How to trade RIL
The Relative Strength Indicator (RSI) remains neutral, reflecting indecision. "Traders may consider range-bound strategies until a clear breakout or breakdown occurs," Arora said.
For the long term, the stock looks good and can be bought at every dip. The Stochastics Oscillator is moving in an upward trend along with an increase in volume indicating further upside move with limited downside risk.
"One can buy at current level and more on dips of 1230 with stop loss of 1150 on weekly closing basis and upside can be seen till 1500-1650 in the coming 10-12 months," said Chheda.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Reliance had held its ground this year despite the volatility in markets. The stock gained nearly 6% on a year-to-date basis, which is not bad considering the geopolitical uncertainties.
However, the shares are nowhere near to their highs. After making an all time high around 1603 in July last year, the stock fell into a bear grip to make a low of 1115. The recovery later meant that the price is now 19% away from 52-week highs.
Analysts said the stock is currently moving in the range of 1180-1340 for the last six months, and a breakout on either side will give further 100-150 points rally.
"The stock is currently trading near its resistance level and as the volumes are getting higher we can see breakout on the higher side. At the lower level, whenever stock corrects it takes the support of 200 DMA and gives the pull back. Price is consolidating in this range and once the breakout is done on the higher side we can see a sharp upside move," said Viral Chheda, Sr Analyst, SSJ Finance & Securities.
Key zones to watch out for
In the sideways trade, the support for RIL is placed at Rs 1280 and resistance at Rs 1320. The stock lacks clear directional momentum and is consolidating in a tight band.
"A breakout above Rs 1320 could trigger a short-term rally toward Rs 1345–1360, while a breakdown below Rs 1280 may lead to weakness toward Rs 1250," said Riyank Arora technical analyst at Mehta equities.
How to trade RIL
The Relative Strength Indicator (RSI) remains neutral, reflecting indecision. "Traders may consider range-bound strategies until a clear breakout or breakdown occurs," Arora said.
For the long term, the stock looks good and can be bought at every dip. The Stochastics Oscillator is moving in an upward trend along with an increase in volume indicating further upside move with limited downside risk.
"One can buy at current level and more on dips of 1230 with stop loss of 1150 on weekly closing basis and upside can be seen till 1500-1650 in the coming 10-12 months," said Chheda.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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