Dear Fellow Readers,
The stock of Reliance Capital has been in the corrective zone since 2008 crash and, according to my opinion, the last leg of this southward movement is about to come to an end either in few weeks or few months. Those, who are long-term investors, who have already invested in the stock or awaiting for the Golden Opportunity to invest in shall accumulate the stock once it breaches below 226.05, the low of the primary wave (iii) of cycle wave 2, as shown in the above weekly chart attched with this post. Personally, I believe that the stock may get bottomed out at around 180 - 200 zone.
For the short-term traders, who are risk takers, and have short position in the stock shall keep their position open, as it is expected that the stock of Reliance Capital may see the level of 365-375, the level where the short positions looks to be good to get covered or one may go long at that level for short term target upto 470. The chart in this reference will be updated periodically.
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The upside corrective rally in Reliance Capital looks to be nearing to an end. The chart for the reference has been put up for the same.
Today, the whole upward rally in RelCapital upto 460.70 looked to be corrective rally as againt its impulsive movement from 462.60 to 444.15. RelCapital had given exact 89.30% retracement to the same.
If the same is correct, then, we may witness a sharp downward movement in the stock from tomorrow's trading. May be it will open flat or slightly higher or lower as compared to today's closing, and trade slow in the initial sessions of the day but it will start moving fast once there builds up pressure in the market as a whole.
The stock is wild in nature and may hit your stoploss. So, before unwinding your positions hurriedly think twice!