Technical Analysis – Reliance Industries – 21st Feb 2010
Reliance Industries (Rs 983.2) – It is very hard to keep Reliance Industries away from the thick of the action and the stock led the market lower in the last two sessions on concern that its bid to buy Lyondell Basell Industries may have to be raised. The steep plunge from the intra-week peak of Rs 1,038.3 on Thursday denotes that the medium-term trend in the stock continues to be down since the peak formed on January 15.
Another rebound from Rs 975 level will keep the stock volatile in the range between Rs 975 and Rs 1,040 in the budget week. Investors should however exercise caution as long as it trades below Rs 1,040. Targets on a decline below Rs 975 are Rs 936 and Rs 874.
As indicated earlier in our ‘pivotals’ column the medium-term boundaries for this stock are Rs 850 and Rs 1,200. Investors can start bottom fishing in the band between Rs 850 and Rs 900.
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