RELIANCE - Week next to quarterly results

23 янв. 2021 г.

Previous quarterly results was announced on 30-Oct

• Revenue decrease 23%
  
• Profit after tax decrease 6% [QoQ]
  
• Stock price falling preceding 2 weeks
  
• Strength reducing preceding 2 weeks
  
• Stock fell from 2054 to 1880
  

Current quarterly results announced on 22-Jan

• Revenue decrease 20%
  
• Profit after tax increase 25% [QoQ]
  
• Stock price rising preceding 1 week
  
• Strength increased preceding 1 weeks
  
• Direction indicator value improved for positive move
  
• However momentum's trend is not strong [visible in last 2 days' candles , one has big top wick,
  other gave bearish engulfing - making 2120 a tough resistance ]
  

Indicative price move for next week seem to have higher probability for Rising Price - continued strength
As momentum's trend does not show mass, it may try going back to 2075 after rising to 2100 on Day-1

Aggressive trader : Buy 50% qty at current price, add 50% qty after price rise above 2075.
Conservative trader: Buy 25% qty at current price, add 25% qty after price give pull-back at bottom of last candle,
add 50% after price move above 1st purchase in trade's direction.

EXIT:
Day's close below last week's candle close

Earning efficiency visible from quarterly results . . .

*In spite 5-6% revenue reduction in Retail segment, it's EBIDTA increased 50% compared to Sep-2020
Digital services revenue increased 32% compared to Dec-2019, but EBIDTA increased much higher to 48%