Reliance had been consolidating lately
within a range of 2800-2950. However, it
surged in the Friday's session on the back
of increasing volumes. The higher band
of 2950 levels had been witnessing
increased selling pressure followed by
renewed buying interest at the bottom
levels of 2800. The leading indicator like
14-day RSI has given a strong buy signal
as it stabilized around the 60 levels of the
100 scale and cut the trigger line, indicating
significant surge from the current levels.
The stock is currently trading above all the
major moving averages and the 30-day
EMA is placed around 2800 levels which
should act as a strong support. This stock
is an excellent pick from the current levels.
All long positions in the stock should be
protected with a stop loss placed below
2750 levels on a closing basis for upside
targets of 3100 and 3200 levels.
Axis Bank had been consolidating lately
around its rock solid support zone of 900
levels. The stock had witnessed significant
rally in the penultimate month during
which it made an all time high of 1025
levels. However, profit booking forced the
stock to test lower levels of 900-950. The
stock has broken out above the
consolidation band and further decline in
the stock is largely ruled out. The 14-day
RSI is hovering around 65 levels and has
generated a strong buy signal from the
current levels. Immediate resistance is
placed at around the all time high levels.
A sustained close above that level will induce
fresh buying interest in the stock, which might
guide it to test further highs of 1100
and 1150 levels. The 50-day EMA level is placed
at around 900 levels which is unlikely to be
broken in the near-term.Investors are advised to
assume long positions in the stock in the range
of 950-1000 levels for a medium-term target
of 1100 and 1150 levels. All long positions in the
stock should be protected with a stop loss placed below
885 levels on a closing basis.