7 January 2026, Reliance Industries Limited (RELIANCE) is undergoing a healthy price correction after hitting a fresh 52-week high of ₹1,611. The current market price of ₹1,507 follows a sharp ~4% intraday decline caused by profit booking and global sentiment, placing the stock at a critical "Buy on Dips" juncture.
Technical Overview
The stock recently faced rejection at the ₹1,600 psychological level, leading to a gap-down opening. While the short-term trend is weak due to this sudden sell-off, the structural long-term trend remains firmly bullish as the stock continues to trade above its major moving averages (100-DMA and 200-DMA).
1. Short-Term View (1–4 Weeks)
The stock is currently testing its immediate support zone. Until it reclaims the ₹1,555 level, the bias will remain sideways to negative.
Trend: Mildly Bearish / Consolidation.
Immediate Target: ₹1,575 (Gap-fill)
Secondary Target: ₹1,612 (Recent High)
Stop Loss (SL): ₹1,480 (Recent swing low).
2. Long-Term View (6–12 Months+)
The long-term thesis is supported by the anticipated Jio IPO in H1 2026 and potential tariff hikes. The current correction is viewed as an accumulation opportunity for investors.
Trend: Bullish (Secular Uptrend).
Primary Target: ₹1,710
Extended Target: ₹1,850 – ₹2,020
Stop Loss (SL): ₹1,420 (Strong support at the 200-day EMA).
Technical Indicator Dashboard
Indicator Status Observation RSI (14) 44.0 Approaching the "oversold" region; indicates potential for a bounce-back. Moving Averages Mixed Below 20 & 50-DMA, but well above 200-DMA (₹1,427). MACD Bearish Crossover below the signal line indicates near-term selling pressure. Support Levels ₹1,495, ₹1,482 Critical levels where buyers usually step in. Resistance Levels ₹1,555, ₹1,611 Key hurdles for a fresh breakout.
Export to Sheets
Trade Setup Poster: RELIANCE (CMP 1507)
"Strategic Pullback" Setup
Entry Zone: ₹1,495 – ₹1,510
Short-Term Target: ₹1,575 / ₹1,612
Long-Term Target: ₹1,850+
Safety Net (SL): ₹1,480 (Closing basis)
Rationale: The stock is filling a previous price gap. Institutional delivery volume remains high, suggesting that large players are using this dip to add positions before the Jio IPO catalysts.
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