Trade Idea of The Day - Reliance Industries Limited Target Rs. 42 - Religare Broking Ltd
Reliance Industries Limited
Industries Limited BUY 26 MAY 1450 CALL Entry Range 19 – 23 Target Range 42 Stop Loss 10
Rationale
* On the daily chart RELIANCE has witnessed a robust breakout from the falling trendline aligned with price rejections from the 50-DEMA trendline, showing signs of sustained recovery with a base formation near the 1380 mark
* On the technical front stock exhibits a strong demand emerging at lower levels with upside potential towards the recent swing high of 1480 as long as prices holds above short term moving average of 20-DEMA.
* The key Momentum indicators, RSI has rebounded toward the 60 mark, while MACD is witnessing a positive crossover, indicating strengthening upside momentum.
* To capitalize on the emerging bullish reversal structure, one may consider buying the ATM call option of 1450 strike, adopting a buy-on-dips approach.
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SEBI Registration number is INZ00017433
