Reliance Industries: Major Breakout Above 52-Week High Seen; Technicals Lend Support

Indices in trade today are trending firm with the Sensex and Nifty trading near record highs. Broader markets are too trading with similar strength with Nifty Midcap index up by 0.29%. India VIX has meanwhile climbed ahead of the derivatives expiry and trading close to 14 levels.

Among Nifty gainers as well as among the most active stocks, the one stocks that is leading has been the counter of Reliance Industries. The Nifty heavyweight at the time of writing this story traded with gains of 1.4% at Rs. 2229.75, while its 52-week high has been Rs. 2369.35.

On the technical front, the weekly chart suggest the process of formation of 3 Rising Valleys patters and hence the share is seen to confront resistance the Rs. 2200 level. And as soon there is a break out above this level together with the above average volumes, the stock will be on a uptrend to its 52-week high levels of Rs. 2369. Post which there is estimated a massive breakout. Volume in the scrip will gain momentum over the next few weeks. RSI which is close to 60 also suggests long term positive momentum in the scrip.

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