The stock of RIL was volatile and ended the week on a negative note by declining almost one per cent. But the fall has not entirely offset the stock’s recent up move. If it declines to Rs.912 in the coming week, it will imply that the strength of its short term up move is waning.
The stock hovers well above its 50 and 200-day moving averages and faces a key resistance at Rs.970. Failure to breakthrough this resistance level can pull the stock down to Rs.925 and Rs.912 levels in the ensuing trading sessions.
The indicators and oscillators in the daily chart feature in the bullish zone, but show signs of weakening. Also, declining daily volumes signal lack of buying interest. Therefore, only a decisive breakout of Rs.970 level can take the stock higher to Rs.990 or Rs.1,010 levels in the medium term. Strong fall below Rs.912 will alter the short-term uptrend and drag the stock down to Rs.900 or Rs.880 levels.
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