Reliance (Waiting to breakout ?)
Reliance has relatively been a quiet stock for some time now, except for one move that came on the 7th of October. Rest of the days it has mostly corrected or been range bound in the recent past.
Mr. Ambani also has been on a selling spree for the last few months now, divesting stake in Reliance Jio before and Reliance Retail now. The market hasn't given a similar move as it did before to the news of divestment and has been relatively immune to such news. Mr. Ambani has plans to make Jio an international brandname in the IT space majorly focusing on Telecom but expanding into other IT related segments as well.
This vision has been supported by major players in the same industry being Google, Facebook etc. He also plans to de merge Reliance Industries into 3 segments in the future which will surely prove to be a value unlocker for Reliance Jio and Reliance Retail.
Looking at the Technicals purely, Reliance has been forming a triangle in the hourly time frame, with RSI doing the same too. The shorter term moving average (9 EMA, the green line) is almost at the verge of forming a golden cross with the 50EMA (the red line) indicating a bullish bias for the stock, which should ideally make the stock touch the upper end of the triangle. A breakdown from the triangle might be further supported by the 200 EMA (the grey line) breaching which the stock should go and test its first support in 2160 levels. With results round the corner the stock might ignore technicals and act purely based on fundamentals so always be aware of the same.
Trade with Caution.
Mr. Ambani also has been on a selling spree for the last few months now, divesting stake in Reliance Jio before and Reliance Retail now. The market hasn't given a similar move as it did before to the news of divestment and has been relatively immune to such news. Mr. Ambani has plans to make Jio an international brandname in the IT space majorly focusing on Telecom but expanding into other IT related segments as well.
This vision has been supported by major players in the same industry being Google, Facebook etc. He also plans to de merge Reliance Industries into 3 segments in the future which will surely prove to be a value unlocker for Reliance Jio and Reliance Retail.
Looking at the Technicals purely, Reliance has been forming a triangle in the hourly time frame, with RSI doing the same too. The shorter term moving average (9 EMA, the green line) is almost at the verge of forming a golden cross with the 50EMA (the red line) indicating a bullish bias for the stock, which should ideally make the stock touch the upper end of the triangle. A breakdown from the triangle might be further supported by the 200 EMA (the grey line) breaching which the stock should go and test its first support in 2160 levels. With results round the corner the stock might ignore technicals and act purely based on fundamentals so always be aware of the same.
Trade with Caution.
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