2,170 level crucial for RIL, can have rub-off on Nifty: Analysts

Mumbai: Reliance Industries (RIL) is near a crucial support, which, if broken, could see a retracement up to Rs 2,020, said technical and derivatives analysts. However, they added that if the level of Rs 2,167-2,170 held , the stock could bounce.

“It needs a conclusive close below the Rs 2,170 level to slip to the Rs 2,000 level,” said Rohit Srivastava, founder IndiaCharts. Srivastava feels that RIL could also have a “rub-off” effect on the Nifty, which could retrace to 11,550.

The stock, which closed at Rs 2,178 a share on Friday, has witnessed some amount of long liquidation since the present series began. Also, active options have seen a put call ratio of 0.49, which ironically could result in a bounce if the Rs 2,170 level holds. That is because the PCR shows traders have shorted call options big time and a bounce could be the outcome of covering these.


“It’s a sort of 50-50 chance, given the huge shorting of October 29 calls,” said Rajesh Palviya, derivatives head of Axis Securities.

A bounce could result in the stock revisiting Rs 2,250-2,300 levels.

Chandan Taparia of Motilal Oswal hopes if the swing low near current levels holds, a bounce would be probable.