Reliance Industries Ltd BUY

 

Analysis of Reliance Industries Ltd (5-Min Chart)

The chart shows Reliance Industries Ltd. on a 5-minute timeframe with price action, volume, trendlines, and RSI (Relative Strength Index) indicators.

Key Observations:

Trend:

The stock is in a short-term downtrend, forming lower highs and lower lows.

A descending trendline resistance (purple line) is visible.

Support & Resistance Levels:

Short-term Resistance: Around ₹1,250-1,255, where the stock is testing the trendline.

Short-term Support: Near ₹1,247-1,245, as seen from consolidation at this level.

Long-term Support: If the price breaks ₹1,245, the next strong support might be ₹1,230-1,220 based on historical price action.

Long-term Resistance: Above ₹1,270-1,280, a reversal towards ₹1,290-1,300 could be seen.

Indicators (RSI & Volume):

RSI (Relative Strength Index): 37.61, indicating the stock is approaching the oversold zone (<30).

Volume: Decreasing, suggesting weak selling pressure and possible consolidation before a breakout.

Trade Setup:

Bullish (Long) Trade Setup:

Entry: Above ₹1,255 (Breakout of trendline resistance).

Target: ₹1,270-1,280 (Short-term), ₹1,300 (Long-term).

Stop-loss: Below ₹1,245.

Bearish (Short) Trade Setup:

Entry: Below ₹1,245 (Breakdown of support).

Target: ₹1,230-1,220.

Stop-loss: Above ₹1,255.

Conclusion & View:

Short-term View: Watch for a breakout above ₹1,255 for a bullish move or a breakdown below ₹1,245 for further downside.

Long-term View: If the stock sustains above ₹1,270, it can target ₹1,290-1,300; below ₹1,220, it can see more weakness.

Risk: Tight stop-losses recommended, as the stock is near key levels.