Wednesday, 30 July 2014

REALINCE WILL IT FALL 10 % BEFORE RALLYING

WE HAD CLEARLY TOLD TO SELL RELIANCE WHERE EVERY ONE WAS SO SO BULLISH ON  MARKET--STOCK STOCK HAS NOW FALLEN 6 %  FROM WHERE WE TOLD---

TOLD TO BUY 1000 PE  @ 15-- NOW ALMOST DOUBLED TO HIT 28

THIS WAS OUR MAIL 
From: MARKET TRENDZ <trendzofmarket@gmail.com>
Date: Wed, Jul 23, 2014 at 11:44 AM
Subject: WILL RELIANCE FALL TO 920 BEFORE IT RALLY TO 1140


LITTLE RISKY : BUY RELIANCE 1000 AUG PE @ 15 RS  SL IF RELIANCE CLOSE ABV 1050  LOT SIZE 250 
 

Reliance has made a big move in last few days from levels of 960 to 1130. Now, this seems to have generated lots of bullish interest in the stock. The Big question: What Next?
Well technically, Reliance is setup for decline to 920 first before delivering a rally to 1140. Here’s why


Reliance Daily Chart


Reliance is very close to the resistance of 50 dma/ 1040-1050. Reliance formed this resistance when stock broke down (Gap down reaction) below it post Govt announcement on delay in Gas pricing decision. The resistance at 1040-150 would keep the stocks  bullish progress in check. Near 1040-1050, the stock seems vulnerable to sharp correction on any profit booking in the market. In that circumstances, the stock can decline to its solid support base of 200 dma and turnaround support level of 920.
Should one Short the Reliance?
No. One should never short in Bull Market. Technically, one should be neutral on the stock near levels of 1040-1050.

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