Reliance Industries slips below 200-DMA

From the high of Rs 2,369.35, which was registered on September 16, 2020, the stock of Reliance Industries has lost almost 20 per cent. On Wednesday, the stock slipped below its 200-DMA for the first time after April 22, 2020, which is a bearish sign.   

In technical parlance, the 200-DMA is considered important as it is one of the basic technical indicators that can be used to determine the long-term trend of security.  

Talking about the indicators, the 14-period daily RSI is currently quoting at 41 levels. The RSI is trading below its 9-day average and it is in a falling mode. On the weekly chart, the RSI has slipped below its prior swing low, which is a bearish sign. The fast stochastic is also trading below its slow stochastic line on both, the weekly and the daily charts. Moreover, the weekly MACD stays bearish as it is trading below its zero line and signal line.   

Going ahead, the zone of Rs 1,870-Rs 1,860 will be a crucial support zone for the stock as the lower trendline support of the rising channel is placed in that region. In case, the stock sustains below the level of Rs 1,860, it would invite further selling and it may test the level of Rs 1,798, followed by Rs 1,622. On the other hand, the 20-day EMA level will be a crucial resistance for the stock, which is currently quoting at Rs 1,977 level.   

On Wednesday, the stock of Reliance Industries Limited closed at Rs 1,895 per share, dipped by 2.37 per cent. The stock opened at Rs 1,925 per share and hit an intraday high of Rs 1,925 and a low of Rs 1,888 per share on NSE.