RIL stock could enter bearish phase; bulls favour Airtel, tech charts show

Reliance Industries' stock needs to defend Rs 2,340, whereas Bharti Airtel can jump up to 12%

Shares of Reliance Industries and Bharti Airtel were on the extreme end of the spectrum on Monday amid different corporate developments. Bharti Airtel, for instance, surged 6 per cent and hit a new high on the BSE in Monday's intra-day trade after the telecom services provider increased its tariffs for telecom subscribers for a range of services effective November 26. READ MORE

Reliance Industries' stock, on the other hand, declined 4 per cent in the intra-day trade after the company called-off the deal with global oil giant Saudi Aramco for a 20 per cent stake acquisition by the Saudi firm in the oil to chemicals (O2C) business of the former company. READ MORE

Here's how both these stocks look on charts:

Reliance Industries Ltd (RELIANCE)
Outlook: Needs to defend Rs 2,340 levels.

As soon as the shares of Reliance Industries Ltd breached 50-days moving average (DMA) aggressively, located at Rs 2,536 levels, the negative bias took over the bullish sentiment. Going ahead, if the stock collapses below the next crucial mark of Rs 2,340 levels, which is not only the 100-DMA but also the neckline of "Head and Shoulder" pattern, the negative downside may put the stock on bearish outlook from short-to medium-term, according to the daily chart.

The Moving Average Convergence Divergence (MACD) broke the zero line downward suggesting a negative momentum and the stock is expected to slip further. Also, if the stock fails to defend the support of Rs 2,340 levels, the negative bias may fall in the direction of Rs 2,200 levels. CLICK HERE FOR THE CHART
 
 
Bharti Airtel Ltd (BHARTIARTL)
Likely target:  Rs 800 and Rs 830
Upside potential:   8% to 12%

After witnessing a resistance near Rs 740 levels in the month of September 2021, shares of Bharti Airtel Ltd managed to form an accumulation phase in the range of Rs 680 to Rs 660 levels. This move led to a reversal that conquered the significant resistance of Rs 740 recently and is ready to rally further with a strong gap up today, according to the weekly chart.

The immediate support comes at the Rs 720 and Rs 700 levels and the stock is ready to move in the direction of Rs 800 and Rs 830 levels. One can expect the next level of accumulation near Rs 720 levels, which was the breakout mark from sideways consolidation. CLICK HERE FOR THE CHART