The recent price actions of Reliance Industries really surprised and forced to take deep look at the chart. The counter which was either remaining at par or under-performing the broader Indices suddenly started to out-perform the broader markets. So an attempt has been made to analyse the counter in a different time periods to help the Investors.
As per daily chart Reliance today almost kissed its 200 DMA placed around 920 mark. On daily chart the counter found support at its 50 DMA and quickly regained its 20 DMA too. For the last four sessions it has been trading above its short term moving averages which is a positive signal. RSI has moved above 50 and we have MACD Bullish crossover above zero line which is quite bullish. So in tomorrow's session if the counter sustains above 920 we may see possible rally up to 936-944 levels where the weekly resistance zone is placed.
As per weekly chart the counter seems to have steadily started its northward journey as it has started forming Higher-High and Lower-Low on weekly chart. Weekly chart also shows the development of Symmetrical Triangle Pattern. Weekly close above 945 or 61.8% retracement may prove very powerful and the counter may rally 1014 to 1035 levels.
On a monthly chart Reliance crossed its golden ratio on multiple occasions however it failed to give the close above the same which seems to be placed around 1160 levels. Any monthly close above the said level may took the counter to cross 1600 mark.
Conclusion : View is definitely Bullish on these multiple time frames. The counter well deserves a place in medium to long term portfolio as it is expected to out-perform the broader markets So traders can start accumulating the counter in a gradual manner. 795 seems to be reasonable stop loss level.
