It is probably time to take market cues from the Index mover Reliance Industries.
The Stock did try to surpass the resistance zone of Rs 2650-2700 but failed to do so, presumably because of heavy selling from large players.
Technically, you may consider that the pre-Jan08 support zone of Rs 2700/- has now effectively become a resistance zone - a classic case of previous support changing its role as a resistance provider!!
The more recent move from Rs 2200 levels to Rs 2700 levels is in the form of a rounding pattern (though technically it cannot be called a rounding top).
The immediate support is at Rs 2480, which is incidentally today's low and a break below this should lead to further selling. I would target a re-entry into the sub-Rs 2200 price zone. Keep a Stop at 2665 for short sell positions.
And yes, if this heavy weight falls as evaluated, I wonder which stock can support an already weakening Nifty !!!
Happy trading !
1 comment:
Dear Sir,
Your blogs are really a learning for people interested in Tech analysis.
It is sad to note that some are copying without due credit.
Please continue your blogs for the benefit of the people
Regards,
Manikandan
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