Has RIL stock survived a major scare? Trade above Rs 1,270 holds the key

Reliance Industries stock was seen testing the 10-year support indicator around Rs 1,200 levels for the last two months; the stock has now gained over 5% from the lows, will the rally continue?

Reliance Industries (RIL) stock was trading close to its long-term support levels on the weekly and monthly chart for the last two months. The stock had tumbled by 25.7 per cent from a high of Rs 1,617 in July 2024 to a low of Rs 1,201 in December.  Technically, RIL stock was seen seeking support around its 200-WMA (Weekly Moving Average) and the super trend line on the monthly scale. The 100-WMA for RIL now stands at Rs 1,200, while the monthly super trend line remains at Rs 1,198.  Historical chart shows that RIL stock had briefly violated the 200-WMA during the Covid-19 related panic selling in March 2020. Prior to which, RIL had respected the key long-term moving average since April 2015 - i.e. for nearly 10 years now. Similarly, the RIL stock has been holding above its super trend line support since April 2014. Thus, underlying the importance of these two key support indicators for the stock.  Amid the recent downturn, Reliance stock precisely tested the key support around Rs 1,200, and has now bounced back to Rs 1,265 levels - up over 5 per cent from the lows.    Does the pullback indicate a likely trend reversal for RIL stock; and has the stock managed to survive a major fall?  Here's how Reliance Industries stock is placed on the technical chart.  Reliance Industries (RIL)  Current Price: Rs 1,265  Upside Potential: 12.3%  Downside Risk: 32.8%  Support: Rs 1,200  Resistance: Rs 1,270; Rs 1,306; Rs 1,360; Rs 1,380  RIL stock, at present, is seen testing the resistance around the super trend line on the daily scale at Rs 1,270 levels. The key momentum oscillators on the daily and weekly charts are placed favourably; thus implying that the upside may extend in the near-term.  Break and sustained above Rs 1,270, shall pave the way for a likely up move towards Rs 1,360; above which a jump towards the 200-day SMA (Simple Moving Average) at Rs 1,420 cannot be ruled out. Having said that, the broader trend for RIL stock shows likely capping of upside around Rs 1,380 levels; with interim resistance at Rs 1,306.  On the flip side, break and sustained trade below Rs 1,200 shall weaken the chart structure, as such a sharp fall towards Rs 850 levels cannot be ruled out. Intermediate support for the stock on the downside is visible around Rs 1,145 and Rs 1,074 levels. CLICK HERE FOR THE CHART