Reliance Industries

• 31 May, 2024 Ruchit Thakur

Reliance Industries

As discussed in our last analysis, Reliance Industries is seeing a decent fall; will it continue to fall or bounce back? 

Reliance Industries gave a nice opportunity to short sell around 2950-3000 zones, as highlighted in our prior analysis, and it has been performing well thus far with a large negative potential.

Please see Reliance Industries daily chart. The stock is trading below the trendline resistance and continuing down after taking the reasonable supply around 2950-3000 zone as mentioned in our recent report. The expected downside range is 2700-2500, which correlates to past swing lows. 

• Reliance Industries has provided wonderful short-selling possibilities because it has taken the reasonable supply around 2950 to 3000 zones and is progressing well with the down trend..
• Reliance Industries is weak on the chart, and the downside is open for the 2700 and 2500 zones from here on.
• In our previous study, we suggested that the 2950-3000 zone was the ideal level to short this stock since the risk-to-reward ratio was excellent for starting a short sell bet in June futures.

Please read the attached Reliance Industries Chart for reference. The daily chart shows a downward sloping trendline and supply in the 2950-3000 range, and the stock is declining after taking the ample supply in the previously mentioned range.

Please look at the downward sloping trendline and supply zones, which have been active since the last week of May and are currently causing a downward trend in stock. So far, the stock has continued its downward path. As previously said, traders could look for a short sell opportunity around the 2950-3000 range because the stock is experiencing supply and the stop loss is around 3020, indicating a favorable risk-reward ratio.

Traders could continue the short sell strategy in June futures and set a stop loss at 3020 to attain price goals of 2700 and 2500 zones respectively.

Reliance Industries' daily chart displays support and resistance. The spot chart represents every level. 

Company Profile: Reliance Industries Limited is an Indian multinational conglomerate based in Mumbai. It operates in energy, petrochemicals, natural gas, retail, entertainment, telecommunications, mass media, and textiles. Reliance is India's largest public corporation in terms of market capitalization and sales, as well as the world's 100th largest firm. It is India's largest private tax payer and exporter, accounting for 7% of all merchandise exports. The corporation has relatively little free cash flow and a significant level of corporate debt