{"id":8356,"date":"2022-05-17T15:29:43","date_gmt":"2022-05-17T09:59:43","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=8356"},"modified":"2022-05-17T15:34:11","modified_gmt":"2022-05-17T10:04:11","slug":"reliance-industries-technical-analysis-kunal-rambhia","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/reliance-industries-technical-analysis-kunal-rambhia\/","title":{"rendered":"Reliance Industries&#8217; Technical Analysis: Will The Stock Be a RELIABLE Counter?"},"content":{"rendered":"\n<p><em>Kunal is a fund manager at The Streets, a private fund. He has been in the <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-equity\/\">equity<\/a> market since 2010, performing various roles such as Associate Research Analyst, Research Analyst, and Associate <a href=\"https:\/\/www.tickertape.in\/blog\/portfolio-manager\/\">Portfolio Manager<\/a>. He has media appearances with CNBC and ET NOW. Kunal is also a visiting faculty in multiple colleges.<\/em><\/p>\n\n\n\n<p>Sizeable correction offers decent entries in the counters with the best risk-reward ratio. As a market participant, I always prefer to focus on the risk-reward ratio, which can help grab positional trades with minimum risk on the lower side. Here is one such opportunity in <a href=\"https:\/\/www.tickertape.in\/stocks\/reliance-industries-RELI?checklist=basic&amp;utm_source=blog&amp;utm_medium=gart&amp;utm_campaign=kunram\" target=\"_blank\" rel=\"noreferrer noopener\">Reliance Industries<\/a> based on \u201c<a href=\"https:\/\/www.tickertape.in\/blog\/technical-analysis-of-stocks\/?utm_source=blog&amp;utm_medium=gart&amp;utm_campaign=kunram\">technical analysis<\/a>\u201d.&nbsp;<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/reliance-industries-technical-analysis-kunal-rambhia\/#Weekly-Price-action\" title=\"Weekly: Price action\">Weekly: Price action<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/reliance-industries-technical-analysis-kunal-rambhia\/#Weekly-trendlines\" title=\"Weekly trendlines\">Weekly trendlines<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/reliance-industries-technical-analysis-kunal-rambhia\/#Weekly-Ichimoku\" title=\"Weekly Ichimoku\">Weekly Ichimoku<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/reliance-industries-technical-analysis-kunal-rambhia\/#Daily-chart-Relative-Strength-Index-RSI-and-Fibonacci\" title=\"Daily chart: Relative Strength Index (RSI) and Fibonacci\">Daily chart: Relative Strength Index (RSI) and Fibonacci<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/blog\/reliance-industries-technical-analysis-kunal-rambhia\/#Daily-chart-200-Period-Exponential-Moving-Average\" title=\"Daily chart: 200 Period Exponential Moving Average\">Daily chart: 200 Period Exponential Moving Average<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/blog\/reliance-industries-technical-analysis-kunal-rambhia\/#Ratio-chart-Reliance-and-Nifty\" title=\"Ratio chart: Reliance and Nifty\">Ratio chart: Reliance and Nifty<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/blog\/reliance-industries-technical-analysis-kunal-rambhia\/#Putting-it-all-together\" title=\"Putting it all together\">Putting it all together<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Weekly-Price-action\"><\/span><strong>Weekly: Price action<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"485\" src=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/05\/image4-1024x485.png\" alt=\"\" class=\"wp-image-8357\" srcset=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/05\/image4-1024x485.png 1024w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/05\/image4-300x142.png 300w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/05\/image4.png 1334w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<p>This weekly chart of Reliance has data from 2017. A decisive trendline has been offering support to the counter since then. Certainly, it got violated during 2020, but prices were reclaimed soon and the trendline continued offering support again. In the previous week, low tested the same support line again and bounced from that zone, making it a shortlisting-worthy candidate.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Weekly-trendlines\"><\/span><strong>Weekly trendlines<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"482\" src=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/05\/image6-1024x482.png\" alt=\"\" class=\"wp-image-8358\" srcset=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/05\/image6-1024x482.png 1024w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/05\/image6-300x141.png 300w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/05\/image6.png 1334w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<p>One more observation on the zoomed weekly chart is that the counter has taken support at the yellow trendline, which is made by connecting the bottoms of 2020 and recent correction. The beauty of the support zone is that it is coinciding with the horizontal support zone created by connecting August 2020 high. That zone (highlighted with a white line) has played a change in polarity role multiple times in the span of 18 months. The 2400 zone seems a perfect \u201cinflection point\u201d and thus worth eyeing to create longs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Weekly-Ichimoku\"><\/span><strong>Weekly Ichimoku<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"479\" src=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/05\/image3-1024x479.png\" alt=\"\" class=\"wp-image-8359\" srcset=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/05\/image3-1024x479.png 1024w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/05\/image3-300x140.png 300w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/05\/image3.png 1333w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<p><a href=\"https:\/\/www.tickertape.in\/blog\/ichimoku-cloud\/?utm_source=blog&amp;utm_medium=gart&amp;utm_campaign=kunram\">Ichimoku<\/a> is a trending (lagging) indicator and confirms the trend late. Considering corrections on the counter, there is no point in looking at Tenkan Sen and Kijun Sen. My focus is on Kumo Cloud. Again, we go back to historical data on the chart, Kumo Cloud has offered support multiple times in the past. Presently price has bounced from the Kumo Cloud zone itself. Also, the trendline support cluster is in the same zone, which is giving more conviction about the potential reversal from the present zone.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Daily-chart-Relative-Strength-Index-RSI-and-Fibonacci\"><\/span><strong>Daily chart: Relative Strength Index (RSI) and Fibonacci<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"486\" src=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/05\/image2-1024x486.png\" alt=\"\" class=\"wp-image-8360\" srcset=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/05\/image2-1024x486.png 1024w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/05\/image2-300x142.png 300w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/05\/image2.png 1334w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<p>After the most recent decline, a ray of hope came from the previous cluster of candles where a hammer (kind of) formation was seen. This zone turned out to be 78.6% of the retracement zone for the last advance. Multiple times, <a href=\"https:\/\/www.tickertape.in\/blog\/relative-strength-index\/?utm_source=blog&amp;utm_medium=gart&amp;utm_campaign=kunram\">RSI<\/a> has bounced from the oversold line (placed at 30) and the bounce is coming from 78.6% retracement alongside the RSI bouncing from the zone of 30. Certainly, the best risk-reward to initiate longs!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Daily-chart-200-Period-Exponential-Moving-Average\"><\/span><strong>Daily chart: 200 Period Exponential Moving Average<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"481\" src=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/05\/image5-1024x481.png\" alt=\"\" class=\"wp-image-8361\" srcset=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/05\/image5-1024x481.png 1024w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/05\/image5-300x141.png 300w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/05\/image5.png 1338w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<p>A simple trend following indicator is the moving average, and one of the simplest is the 200 period <a href=\"https:\/\/www.tickertape.in\/blog\/exponential-moving-average\/?utm_source=blog&amp;utm_medium=gart&amp;utm_campaign=kunram\">EMA<\/a>. One shouldn\u2019t consider the exact level of the moving average, rather consider the zone. On the daily chart, we can see support being offered by 200 EMA almost 10 times and we have seen a good bounce even this time from the same zone. Stay bullish, stay confident \ud83d\ude42<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Ratio-chart-Reliance-and-Nifty\"><\/span><strong>Ratio chart: Reliance and Nifty<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"485\" src=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/05\/image1-1024x485.png\" alt=\"\" class=\"wp-image-8362\" srcset=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/05\/image1-1024x485.png 1024w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/05\/image1-300x142.png 300w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/05\/image1.png 1335w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<p>A perfect curve formation is noticed on the ratio chart of Reliance and <a href=\"https:\/\/www.tickertape.in\/indices\/nifty-50-index-.NSEI?utm_source=blog&amp;utm_medium=gart&amp;utm_campaign=kunram\" target=\"_blank\" rel=\"noreferrer noopener\">Nifty<\/a>. Also, the most recent breakout on the chart is perfectly retested (highlighted with a white trendline).&nbsp;The ratio chart is pointing upward, which confirms Reliance\u2019s outperformance over Nifty in the time to come.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Putting-it-all-together\"><\/span><strong>Putting it all together<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Looking at weekly trendlines from a positional and near-term perspective, Ichimoku Kumo Cloud support on a weekly chart, 78.6% Fibonacci support on a daily chart, reversing RSI from 30 zone and 200 EMA support on the daily chart, are all supporting bullish view from the present zone. The ratio chart of Reliance and Nifty is highlighting a likely outperformance of Reliance in the time to come.&nbsp;<\/p>\n\n\n\n<p><em>Statutory Disclosure<strong>: <\/strong>Kindly note that this update is only for educational purposes. It is safe to assume that my personal position, my fund\u2019s position, my client\u2019s position and my relative\u2019s position may be open on the counter. Prefer to take the advice of your financial advisor before initiating any position.&nbsp;<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Read Reliance Industries&#8217; technical analysis by Kunal Rambhia. As per his analysis, the stock is displaying the best risk-reward ratio to initiate longs.<\/p>\n","protected":false},"author":73,"featured_media":8363,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[9,1742],"tags":[1126,699,297],"acf":[],"modified_by":"Anjali Chourasiya","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/05\/TT-17-May-Kunal-Reliance-industries-BB-scaled.jpeg?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/8356"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/73"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=8356"}],"version-history":[{"count":6,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/8356\/revisions"}],"predecessor-version":[{"id":8374,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/8356\/revisions\/8374"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/8363"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=8356"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=8356"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=8356"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}