The stock has been in steady downtrend from April 1 high of Rs.1,065.55. The crucial support level of Rs.900 was breached a couple of weeks ago and this level would now act as a significant resistance.
Reliance Industries Daily Chart
Reliance Industries Daily Chart, Zoomed-in Version
Interestingly, the stock on Friday reversed at Rs.906 and closed near the day’s low of Rs.858. From the second chart featured above, which is the zoomed-in version of the other chart, it is apparent that the prior support is now acting as resistance.
Any rally would now be a shorting opportunity with a stop loss at Rs.915, for a target of Rs.800.