Reliance Industries has given breakout: IIFL

MUMBAI: IIFL is of the view that Reliance Industries has given break-out from falling resistance line after it closed above Rs 1050. It has advised traders to buy the stock for target of Rs 1098.

“Reliance Industries has given breakout from falling resistance line after it closed above Rs 1050 surpassing earlier peak of Rs 1048.5. Along with breakout stock has also closed above its 200-DMA which prevailing at levels of Rs 1033 for third consecutive trading session. Such a move is likely to catch buying interest from most of market participant as it indicate medium term downtrend has voided.

On the upside we see immediate resistance at levels of Rs 1095 which pertain to peak made during June 2010. On the weekly chart RSI has given positive crossover after formation of inverted head & shoulder which can be construed as positive development in the stock. Based on above mention technical observations we recommend buying stock above Rs 1057 with stop-loss of Rs 1037 for target of Rs 1098,” the report said.

Note: Trading idea valid for time-period of 1-3 days.