{"id":214823,"date":"2012-10-17T10:56:09","date_gmt":"2012-10-17T05:26:09","guid":{"rendered":"http:\/\/stockviz.biz\/index.php\/?p=214823"},"modified":"2012-10-17T10:56:10","modified_gmt":"2012-10-17T05:26:10","slug":"analysis-reliance","status":"publish","type":"post","link":"https:\/\/stockviz.biz\/index.php\/2012\/10\/17\/analysis-reliance\/","title":{"rendered":"Analysis: RELIANCE"},"content":{"rendered":"

This week\u2019s pick is [stockquote]RELIANCE[\/stockquote]. Trading at around the same price as an year ago, the stock has made a meager return of 3% over the last 12 month period. The stock is in constant uptrend since May, with a few small corrections in between after it found the support at 670 levels. <\/p>\n

\"Untitled\"<\/a> <\/p>\n

Oscillators like RSI<\/a> and CMO<\/a> are at currently at 47 and -23. At this level of RSI, the uptrend has no potential stops in the very near future. And looking at the previous highs of RSI, the stock can see an up-move till RSI reaches close to 75. The CMO as well is in the middle, and moving close to the -50 levels. If it gets too close to -50, it will signal a buy. <\/p>\n

MACD<\/a> line and signal line are drifting apart from each other and histogram levels are stagnant, but a higher high in the prices with lower highs in the MACD line is a divergence. This behavior can be suggesting the imminent change in the direction of the prices. <\/p>\n

Looking at GMMA<\/a> for a medium to long term outlook is not giving a lot of indication. The long term lines are moving close to each other (signaling a probable change of previous trend). The decreasing separation in the short term lines also suggests a lookout period for the near term. <\/p>\n

\"image\"<\/a> <\/p>\n

Reliance\u2019s average correlation<\/a> of 0.73 with the Niftybees suggests that the correlation is quite strong and positive, and the movements will be of the similar magnitude as Niftybees. [stockquote]NIFTYBEES[\/stockquote] <\/p>\n

\"image\"<\/a> <\/p>\n

Reliance has volatility<\/a> in the range of 0.2 to 0.6 for the most part, which is not a very big range. The volatility is currently at sky high levels of beyond 0.7, higher compared to the recent past. A constant eye is required on the scrip in case it makes a sudden move. <\/p>\n

The up-trend is quite prominent. Looking at these technical, a short term buy<\/b> is good but for the long term you might want to be cautious<\/b> as the stock can check for the resistance levels at Rs. 900. <\/p>\n

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