Last week, the stock declined almost 2 per cent after testing the resistance at Rs.900 levels. However, it continues to trade in a sideways range between Rs.850 and Rs.900. The oscillators are hovering in the neutral region without any clear bias. The daily volumes have also been declining.
As with other stocks, RIL needs to move out of the sideways range for a clear short-term trend.
Hence, traders with a short-term perspective should stay away as long as it trades in the sideways band.
A strong fall below Rs.850 can drag the stock down to Rs.830 and then to Rs.810.
A decisive rally above Rs.900 would pave the way for a rally to the subsequent resistance in the band between the Rs.930 and Rs.940 levels.
The medium-term trend is also sideways in a wide range.
Investors with medium-term view should also stay on the sidelines.
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