Reliance: Beyond technical analysis
Mis à jour
Today earnings of Reliance industries were declared. It is very clear that the bottom-line of business took a good hit.
Now, RIL has issued the right issue. Here is my look at how as an investor you should look at it.
The right issue will technically reduce your ownership if you don't participate in the right issue. I think one can sell RIL from current level and add them back at around Rs 1260. You can use this profit to buy more shares. (In this case around 15%)
Why 1260?
There is a gap that will be filled by RIL in the near term & personally I have a bearish view on Reliance Industries for short term
Supporting points:
->Low delivery Volume: 28.47% as on 30 April 2020
->Heavy put writing: 1600 OI -> 1,118,000 with a significant increase in OI
1500 OI -> 1,163,000
->Siginificant rally in short term may lead to profit booking.
->After the right issue most of the stocks face heavy selling. (Personal Opinion)
Bollinger Bands + Volume
I have combined Volume with Bollinger bands to show a significant increase in volume. This states that Big/Smart money is present here.
Support/Resistance
I have used Fractals to identify S/R
Now, RIL has issued the right issue. Here is my look at how as an investor you should look at it.
The right issue will technically reduce your ownership if you don't participate in the right issue. I think one can sell RIL from current level and add them back at around Rs 1260. You can use this profit to buy more shares. (In this case around 15%)
Why 1260?
There is a gap that will be filled by RIL in the near term & personally I have a bearish view on Reliance Industries for short term
Supporting points:
->Low delivery Volume: 28.47% as on 30 April 2020
->Heavy put writing: 1600 OI -> 1,118,000 with a significant increase in OI
1500 OI -> 1,163,000
->Siginificant rally in short term may lead to profit booking.
->After the right issue most of the stocks face heavy selling. (Personal Opinion)
Bollinger Bands + Volume
I have combined Volume with Bollinger bands to show a significant increase in volume. This states that Big/Smart money is present here.
Support/Resistance
I have used Fractals to identify S/R
Note
Reliance has completed a triangular pattern again.Note
Correction: RSI near overboughtNote
tough resistance near 1500 level (Previous supply zone)
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