Buy Reliance Industries, target Rs 1250: Ashish Chaturmohta

Ashish Chaturmohta

After touching high of Rs 1,329 in September, Reliance Industries has seen a correction down to Rs 1,016. It has retraced 61.8 percent Fibonacci retracement of the rise from Rs 880 to Rs 1329. Also, the price has taken support at long-term 200-day moving average and seen a bounceback.

RIL is witnessing double bottom formation at support levels on the daily chart. Price has given a breakout on the upside from Bollinger Band with an expansion of bands indicating a continuation in trend in the direction of breakout on the daily chart.

Thus, the stock can be bought at the current level and on dips to Rs 1,135 with a stop loss below Rs 1,010 for a target of Rs 1,250.

Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.

Disclaimer: The author is Head of Technical and Derivatives at Sanctum Wealth Management. The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.