RIL, Indiabulls Real Estate: How to trade these news-driven stocks

Reliance Insustries (RIL) has been on a roll. From selling stake in its telecom venutre Jio Platforms to marquee global investors, the Mukesh Ambani - controlled company has bought a stake in online pharmacy delivery startup Netmeds (Vitalic Health Pvt. Ltd) for a cash consideration of approximately Rs 620 crore. The announcement was made post market hours on Tuesday.

The move saw RIL gain nearly 1.5 per cent in intra-day deals to Rs 2,150 apiece on the BSE on Wednesday.

In a separate development, Bengaluru-based Embassy Group has signed an agreement to merge its various housing and commercial projects with Indiabulls Real Estate Ltd (IBREL) and take control of the merged entity on Tuesday. It already has around 14 per cent stake in Mumbai-based IBREL. READ ABOUT IT HERE

Here are the key levels for the two stocks you need to keep a tab on before making any fresh investment in these counters.

Reliance Industries Ltd (RELIANCE): The stock has faced resistance at higher levels off-late and has been unable cross the resistance of Rs 2,200. Until this resistance does not get taken out convincingly on good volumes, a reliable rally from the current levels cannot be expected. On the downside, Rs 2,000 levels stays a support. If the RIL manages to conquer Rs 2,200 decisively, the next leg of the up move can take it to Rs 2,400 in the short-to-medium term. Presently, major technical indicators have remained subdued with trading volume staying sideways. CLICK HERE FOR THE CHART

Indiabulls Real Estate (IBREALEST): The overall trend is highly bullish with the counter heading towards Rs 90 and then Rs 95 levels. The robust opening of over 5 per cent on Wednesday has further boosted the sentient further. The counter, however, reversed its gains as trade progressed. That said, the overall trend is accompanied by volumes, which have surged and give confidence as regards the mediumm-term price trajectory as well. Although, the Relative Strength Index (RSI) has entered the overbought condition, the price is not showing any major weakness. The Moving Average Convergence Divergence (MACD) has crossed the zero line - an indication of underlying strength. The support stays at Rs 67 levels. CLICK HERE FOR THE CHART