Reliance industries saw a major profit booking in line with the macro indices. The stock recently touched 2200 levels on 3rd Mar 2021. From thereon we have seen constant profit booking in the stock and it has made continuous lower high and lower bottom candles.
The stock is at a critical juncture wherein 50 / 100 and 200 Moving average have converged with a falling RSI , this happened last time in Oct 2019 at around 1300 levels . The stock is seeing pressure due to long term play issues such as margin on refining / petrochemical business , stiff competition in proposed e-commerce business , ARPU revenue in Jio business .
Seen as a barometer of the Indian economy , Reliance industries is well diversified and well established to rake in benefits of the post vaccination world . We see and upside in this stock up-till 2400 in short term with a long term view of over 3000 in next 18 months.