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Viewing report
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Alpha India Late Economic - Will Reliance break 600?
Orpheus Capitals, Sep 2011, Pages: 6
Now that Nifty is back below 5000 and ready to test previous lows, it would be interesting to look at some majors. Today we look at Reliance to understand whether Reliance is going to arrest the Nifty fall or acerbate it. First, Reliance weekly Jiseki just like many indices we pointed out its near 90. This means Reliance has a large multi month cycle against it. This means 500-600 level is potentially possible. Second, our global view on Oil remains negative for the intermediate time frame suggesting there is nothing like rising Oil prices to assist Reliance to move up. Third, conventional DOW theory lower highs has been the norm on Reliance. It failed to move above 1000, then it failed to move above 900 and now it’s stuck below trendline resistance at 850.
The path of least resistance continues to point lower. Now one might say Anna, the daily Jiseki and rankings suggest the stock is oversold and can bounce back. As we mentioned weekly Jiseki cycles have a larger weight compared to daily Jiseki and therefore extreme oversold situation on the Oil major could continue. We have carried a new preferred Elliott wave count for Reliance with new target projections till 600-500 levels.
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