Reliance Industries is heading towards Rs 1,600 levels. Buy now

A successful close above Rs 1,500 can take the counter towards Rs 1,617 levels, which is its lifetime high level

Reliance Industries soared nearly 2.6 per cent on the National Stock Exchange (NSE) on Tuesday and is among the top gainer pushing the market higher.

On the BSE, the counter contributed over 100 points to the S&P BSE Sensex's 630-point rally till 10:45 am. Technical charts suggest that there is more headroom for the stock, provided it is able to take out key levels going ahead on good volumes.

Here's what charts indicate for the stock in the days ahead.

After witnessing massive a sell-off below 100-days moving average (DMA) in the past few sessions, the counter has managed to bounce back and now has a strong upside momentum. It not only reversed from the 200-day moving average (200-DMA) placed at Rs 1,369 levels, but the Relative Strength Index (RSI) that slipped into oversold territory is currently witnessing buying strength.

As the RSI is climbing above the oversold territory, a positive close above Rs 1,430 today should see a rally towards Rs 1,457 and then Rs 1,480 levels in the coming sessions. A bigger upside is capped beyond Rs 1,500 levels. However, a successful close above this level can take the counter towards Rs 1,617 levels, which is its lifetime high level. The overall trend looks optimistic till the counter trades above 200-DMA as per daily chart. CLICK HERE FOR THE CHART