Reliance has helped the market stay up: Rohit Shinde

Rohit Shinde, Asst. V P, Technical Research, CD Equisearch Pvt Ltd.

What is going to happen on Reliance today and then perhaps a little longer term and ONGC?

Rohit Shinde: Reliance has been a very good stock and for these markets which are going up, the liquidity being, like the market breadth being when I get volumes being lower. Reliance was one stock which helping the market to stay up. That was a very good point from Reliance and what we are talking about is important resistance about 1060. It convincing broke that. This particular resistance to 1060 was quite for sometime like, about 1.5 to 2 months. Now it is trying to make a major assault at the 1130 resistance.

Sticking with the candlesticks yesterday what we saw was a Gravestone Doji pattern, maybe a reversal. If I am saying a reversal, not a complete like a bearish reversal. Maybe it can drift down to approximately 1110 but nothing alarming for Reliance like that much but it is good that the stock has gone up giving strength to the market.

ONGC same thing has happened but unfortunately it is not the same picture for ONGC as it was for Reliance. Reliance was able to break all the resistance, go above 1060, currently at approximately 1120 but problem with ONGC is that it is not able to take out 1100 convincingly. Currently quoting at 1083 levels. Again now it is drifting below the moving averages. There was institutional buying maybe in the last week of December up to the first week of January but later on nothing came up.