Traders with a short-term view in RIL can initiate long position with a stop-loss at Rs.895

Last week, the stock of RIL surged 3.3 per cent with good volume and closed above the resistance level of Rs.900. The indicators in the daily and weekly chart are trending upwards, backing the stock’s near-term up move. A positive start this week can take the stock higher to Rs.920 and then a rally to Rs.940 is possible in the short term. Traders with a short-term view can initiate long position with a stop-loss at Rs.895 levels. However, if the stock slips below Rs.900, the bearish momentum will be back and a decline to Rs.880 and then to Rs.850 can’t be ruled out. Next supports are at Rs.830 and Rs.810 levels. Since December 2014, the stock has been in a sideways consolidation phase in a broad band between Rs.810 and Rs.940 levels. Investors with medium-term perspective should remain on the sidelines.