To celebrate Ganesh Chaturti (and our great call on September 2) we are beginning our analysis of individual stocks. The choice of the first stock is a no-brainer. It has to be RIL, with approx 11% weightage in the Nifty, it is surely everyone's favourite. (Forgive my graph, i am stuck to copying and pasting graphs from my excel worksheet. Hopefully i will make enough money to buy cool software, but till then...)
While it is quite likely that the technicals for RIL and the Nifty will be similar, we hope that we will be able to identity price action signals specific to RIL. Here goes.
RIL closed at 2212 on Tuesday. This is just short of 2215 which is the beginning of a major resistance zone. Reliance like the rest of the market has broken the intermediate downtrend, however the sharp up-move on Tuesday means that sustaining an uptrend is going to be difficult. Reliance will need to break out of the current resistance barrier to mover higher.
Trading Strategy: Stay Nuetral. If the stock breaks resitance zone, then take a long with strict stop loss at the resistance.
Supports: 2163, 2099
Resistances: 2215-2245, 2300
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