Reliance Industries is stuck inside a sideways range between Rs.1,000 and Rs.1,055 for the fourth consecutive week. It is currently moving down from the upper end of this range. Intermediate support is at Rs.1,020.
A break below this level can take the stock to Rs.1,010 and Rs.1,000 — the lower end of the range this week. A reversal thereafter will keep the range-bound movement intact and take the stock higher to Rs.1,050 once again.
Traders with a short-term perspective can wait for dips and go long near Rs.1,020. Accumulate longs on further declines to Rs.1,010 and Rs.1,000. Keep the stop-loss at Rs.995 for the target of Rs.1,055. A breakout on either side of the current range will decide the next leg of move.
A strong break above Rs.1,055 will trigger a fresh rise to Rs.1,080 and Rs.1,090. On the other hand, a strong break below Rs.1,000 will turn the outlook negative. The ensuing targets on such a break will be Rs.980 and Rs.960.