Ril Views!!!

Reliance is one of the heavy weights in Nifty, known as the KING among the traders, below is a weekly chart of it. As you can see that it’s in a coil, it’s just managed to kiss its 20 periods EMA and reiterated from there. The weekly impulse is red, not permitting us to buy (its either short or stand aside), if long is your play, wait for it too turn blue. Another thing worth noting is that 1450 and 1500 is a strong band of resistance on the weekly chart. I have shaded the area red, as you can see we have a fib cluster there, we have the 200 period EMA, almost horizontal there and of course the 20 and 200 periods cross also lays there. All this makes it one helluva resistance, if this gets broken on the upside….you just imagine what will happen!!! But we will come to that when get there, as of now lets just respect it and fear it. 1150/80 remains a good support.

The daily chart below shows that, we have managed to close below both the 20 and 50 periods daily EMA’s. We’ve had one false breakout, and now all things long should be looked into on taking out 1280/1315 band convincingly. 1280 I feel has been a very relevant pivot in the past, need to see how we behave there. The daily also supports our earlier views about 1150 odd levels.

The action is better witnessed on the hourly chart shown below, as we can see we are a bit oversold and a pullback is in the order. It’s sitting right on the trendline support. The 1280 I mentioned earlier is also seen here in the shape of the flat 200 periods EMA (in red) and the 20 is also there! The LL and LH formation is on; it gets reversed only when we take out 1315!

"Success is the small sum of efforts, repeated day in and day out." Robert Collier