Sell RIL between Rs.890 to Rs.900 with a stop loss of Rs.930/-

RIL opened with a huge gap down and recorded a low of Rs.819 on Monday, last week. It recovered from this low to close 4 per cent lower for the week. 

However, the recovery lacks strength. Immediate resistance is at Rs.890 which can be tested early this week. 

But this level has to be breached to ease the downside pressure. Such a break can take the stock higher to Rs.915 — the 200-day moving average resistance. 

A further break above Rs.915 can take the stock to its next target of Rs.935. On the other hand, a reversal from Rs.890, which looks more likely at this juncture, can drag the stock lower to the level of Rs.820 once again. 

It will also increase the likelihood of the stock testing its crucial psychological support at Rs.800. Traders can go short on a reversal from Rs.890 with a stop-loss at Rs.920 levels