Reliance Industries: Charts indicate a rally towards Rs 2,000 levels

Mukesh Ambani-controlled Reliance Industries (RIL) has been in news over the past few weeks. With the over Rs 53,000 crore investment by Facebook in Jio Patforms - a part of its telecom vertical Reliance Jio (RJio), quarterly results and then investments by Silver Lake and Vista Equity.

The news has propelled the stock higher over the past few sessions. In fact, RIL, Infosys and Hindustan Unilever — accounted for nearly 51 per cent of the rise in the Sensex, from its 52-week low on March 23. RIL has been the single-largest market mover in the last one-and-a-half months, accounting for nearly a third of the rise in the broader market since March 23. READ 

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If charts are to be believed, there is more headroom for the stock in the days ahead. The counter is merely waiting for a bigger breakout above Rs 1,617.55 levels, which is its lifetime high. The weekly chart indicates a clear long-term support at Rs 1,000 levels on closing basis and this rally may see levels above Rs 2000 in the coming sessions.  The medium-term outlook, too, appears bullish.CLICK HERE FOR THE CHART

The immediate trend suggests a positive bias as the counter trades above the significant moving averages, which are 50-days moving average (DMA), 100-DMA and 200-DMA. The volume seems to be on an average side, however rising gradually. This shows stability in trades and price may not see high volatility going forward. CLICK HERE FOR THE CHART

The immediate support comes at Rs 1,400 levels on closing basis. A breakdown, which seems unlikely, may only appear below the support of Rs 1,350 levels, its 200-DMA. Any minor correction in the range of Rs 1,500 to Rs 1,450 may see buying opportunities as this range witnessed the breakout towards the lifetime high.