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RELIANCE undoubtedly is a stock that managed to dodge the market carnage and gained significantly in the last two months. However the shorter time frame chart suggests profit booking and this could continue. The stock can find significant resistance near 1530-1570 levels. Upper range of this level can be used a stop loss and any move towards these levels can be used to initiate short positions. Possible downside targets are marked in chart.
Trade active:
The short entry levels mentioned as per this post is getting set. Wait for indicator settings to confirm entry
Comments
Short position in the script will have a favourable RR only if intitiated near to the Stop loss level. Will take a fresh look at the PA near to those levels and update chart in case of any evidence against the original call
It is a fair possibility. Lot of retail buyers may come near that level as the rights issue price is closer to that region
There is no doubt about the value in the the company. However the suggested targets are probably better places for accumulation.