The stock of RIL surged 3.3 per cent last week and is currently testing the key resistance at Rs.900.
A decisive breakthrough of this hurdle is required to strengthen the bullish momentum and take the stock upwards to Rs.920 and Rs.940 levels in the near term. Such a rally can be the cue for going long with a stop-loss at Rs.890 levels.
Both the daily and weekly indicators hover in the neutral region without any bias. However, if the stock starts on a negative note and declines, it can roll down to test the supports at Rs.870 or Rs.850 in the short term.
A decisive fall below Rs.850 can pull the stock further down to Rs.830 and then to Rs.810. Since December 2014, the stock has been in a sideways consolidation phase in a broad band between the levels of Rs.810 and Rs.940.
Investors should remain on the sidelines until a clear trend emerges.
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