Reliance was one stock which was under-performing the market in intra day since morning and has given a weak close today. This may not be good news for the indices in general.
Reliance has been in a clear down move and what is formed at present is a 'triangle' pattern on the line chart. Triangles suggest a temporary halt to the ongoing move, before the original move resumes.
A break now below 1980/- will be further weak for the stock. Select technology stocks and other specific stocks are remaining strong, thus keep the Index on positive side.
But we cannot ignore the weakness in Reliance- being a heavyweight.
Moreover on the political front, the situation may still be fluid and this is what is keeping the markets in a nervous state!
For those contemplating Reliance - CAVEAT EMPTOR ('Buyer's Beware)
CA Rajiv D Khatlawala
2 comments:
Sir,
If market sees a bear correction after political clearity/stability now, then can we expect reliance to go towards 2400 testing the resistance line.
Piyush,
That should be possible only on a close above Rs 2210/-
Moreover I have mentioned recently that we need to watch the 3840 levels for Nifty. If that is broken - expect reliance to to be the trigger!
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