The stock of RIL surged 3.5 per cent last week, breaching the key immediate resistance level of Rs.970. However, the stock faces next resistance at Rs.990 and is testing it.
The stock appears to have resumed its medium-term uptrend with the recent rally. It trades well above the 50 and 200-day moving averages. The short-term trend is also up. The indicators in the daily chart such as relative strength index and price rate of change hover in the positive territory backing the uptrend.
Traders with a short-term view can buy the stock while maintaining a stop-loss at Rs.968. The near-term targets are Rs.990 and then at Rs.1,010 levels. Further rally can push the stock higher to Rs.1,025 and Rs.1,050 in the short to medium term.
On the other hand, a conclusive fall below the immediate support level of Rs.970 will have bearish implication and drag the stock down to Rs.940 and Rs.912 levels.
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