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.

RELIANCE PERFORMANCE DURING UPA 2 TENURE

Reliance stock has given lots of pain to its investors.

Here’s the Weekly Chart of Reliance

Reliance stock opened with huge gap-up when UPA 2.0 came to power and stock traded near 1150. It then settled in a range between 900 and 1140 for two years. It looked like a period of consolidation before another upmove. BUT that was not supposed to be the case. The economic and political environment deteriorated and Reliance stock broke down below 900 in June 2011. Since then, 900-910 became a stiff resistance and stock struggled below it.
Now with market once again becoming optimistic, there is a HOPE that Reliance stock may break past 900-910. Whether that will happen – we will wait and see. As of now, only one can watch but remember any move of Reliance above 900-920 will be greeted with lots of enthusiasm and buying
.We invite you to become Premium member of the website and get access to  many more Breakout Opportunities that may come this year. WE just charge 2500 rs/pm .To join us plz mail us to trendzofmarket@gmail.com

CAN NIFTY HOLD 5500 OR CRACK HARD?

The level of 5500 on Nifty is keenly watched level and bulls and bears are in for interesting tussle before this level gets taken out.

Here’s the Weekly Chart of Nifty

As you can see in the chart above – Nifty moved above 5500 in September 2012 on HOPE and since then has sustained above it. Also, on every correction post bullish move in Sept 2012, Nifty has managed to find support near 5500. So there will be hope among bulls that Nifty can defend 5500 this time again
What’s different this time?
Majority of the sectors and stocks are in terrible bear market. Even the sector that helped Nifty recover i.e. Banks appear to be in big trouble. So, bulls have very few friends to offer help. One stock that appears bullish is Reliance

 Reliance after filling the gap has bounced. The chart appears bullish with upside target of 1100. But can Reliance alone save the market? I doubt that. Reliance can offer some resistance to bearish breakdown attempts but sooner or later – it will give in. At this point of time – anything can happen. Nifty can take support and bounce but eventually – fundamentals are just too -ve for market to survive the breakdown.

Reliance: The Next Price Target

Technically, How high Reliance can go in near term. Well, Here’s what Charts have to say.

Let us look at the Reliance Chart

As you can see in the chart above: Reliance stock was trading in a range between 900 and 1140 during 2009-2011 time frame. But the stock broke down below 900 in June 2011. Post breakdown- for two years Reliance under performed and remained below 900. 
But with Gas pricing reforms – Reliance seems to be turning around. Reliance has broken out above 900 and if stock sustains above 900 – then stock has potential to rally to 1140 – the next resistance level. It’s likely that Reliance may start trading in the same zone i.e. 900 on downside and 1140 on the upside. The real momentum will emerge above 1140 which seems unlikely before elections.
In near term: Reliance appears buy on declines near 900 and one can look for target of 1140. 

Power Of Technical Analysis

Abirla from 1010 to 1130

RIL from 850 to 910+

Abv Charts were mailed to paid clients last week