Sunday, April 12, 2009

Reliance Buy above Rs.1800 target Rs.2000


There was no let-up in the bullish fervour on the RIL counter and the stock closed the week with a strong 4 per cent gain. It also held steadily above the 200-day moving average and moved past our first short-term target to an intra-week peak at Rs 1,768. RIL can move higher to Rs 1,786, Rs 1,920 or Rs 1,965 in the short-term, but negative divergences in the daily oscillators calls for caution in the short-term. Traders can buy in declines as long as RIL holds above Rs 1,600. Next support is at Rs 1,500.

The stock is already moving close to our medium-term target at Rs 1,825. A reversal from here will translate into a broad range between Rs 1,100 and Rs 1,800 for the ensuing months. Strong break beyond Rs 1,825 is needed to pull it to Rs 2,040.

Lokeshwarri S. K.
businessline 12-04-09

Our View :
Buy above Rs.1800 target Rs.2000

Reliance after a steep jump in the past 4 weeks is pausing for direction.  Returns over a

1 Week : 13.84%      
1 Month : 50.96%      
3 Months : 38.35%      
1 Year : -24.98% 

The KG6 gas effect has taken it higher driven by news.  With a drop in the daily volume we can expect a mild correction.  Buy on dips, the following data will help you to buy at appropriate levels -

PIVOT - 1986.68, 1924.08, 1861.48, 1798.88, 1767.32, 1736.28, 1704.72, 1673.68, 1611.08 , 1548.48, 1485.88 
FIBONACCI- 1837.57, 1815.91,1798.88, 1774.97, 1760.20, 1736.28, 1712.37, 1697.60, 1673.68, 1656.66, 1635.00

Intelligent Investor
Investment Advisory division of

Ravina Consulting

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