The stock of Reliance Industries gained 3.4 per cent with traded volumes higher than average on Friday. The stock recouped much of the loss it had made early in the week, to close 1.8 per cent down. The bounce back from its significant support and trend deciding level at Rs.940, can keep the stock’s medium-term uptrend in place.
The indicators in the daily chart are showing mixed signs. However, to reaffirm the stock’s medium-term uptrend, it needs to decisively breakthrough the key resistance level of Rs.1,000. Such a break can take the stock northwards to Rs.1,020 and then to Rs.1,050 in the medium term.
As long as the immediate support at Rs.940 holds, traders should tread with caution. However, traders can initiate long position with a stop-loss at ₹960 and exit the stock at around Rs.990 or Rs.1,000.
Conversely, if the stock tumbles below Rs.940, it will be dragged to Rs.915 and then to Rs.900 in the short term.
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