RELIANCE -Watchlist - Descending triangle formation -Daily- Vol

22 сент.

The chart analysis for Reliance Industries (RELIANCE) indicates the following key points:

### 1. **Descending Triangle Formation:**
- A descending triangle pattern is visible, which is a bearish chart pattern formed by lower highs and a flat support line (around ₹2,900-₹2,910). This suggests selling pressure as buyers are unable to push the price higher while the support level remains relatively strong.

### 2. **Key Resistance Levels:**
- The stock is currently facing resistance around ₹3,075 and a stronger one at ₹3,217, which aligns with previous high points.
- If the stock breaks above the descending trendline, it could lead to a bullish reversal, with potential upside targets toward these resistance levels.

### 3. **Potential Support Breakdown:**
- The downside risk is indicated by the yellow arrow pointing towards ₹2,603, which is the next major support level if the ₹2,900-₹2,910 zone fails to hold.
- A breakdown below this zone could result in further selling pressure.

### 4. **RSI Divergence:**
- The Relative Strength Index (RSI) has shown bearish divergence as the price made lower highs while the RSI was in a downward trend. However, RSI is currently near 50.84, indicating neutral momentum but nearing overbought conditions.

### 5. **Volume Trends:**
- The recent uptick in volume suggests increasing interest and could indicate a potential breakout from the consolidation phase, depending on the direction of price movement in the coming sessions.

### Conclusion:
- Watch for a breakout above ₹3,075 or a breakdown below ₹2,900 for the next directional move. Volume confirmation is essential to validate any breakout or breakdown.

This analysis suggests caution until the price breaks out of the descending triangle or support levels are confirmed.

As of September 20, 2024, the Open Interest (OI) data for Reliance Industries shows interesting patterns that provide insights into potential market direction.

Call OI Build-up: There was significant accumulation at the 3,100 and 3,200 strike prices, indicating resistance at these levels. Traders are positioning these as key zones where the stock might face selling pressure if it approaches.

Put OI Concentration: On the downside, the 2,900 strike price saw notable Put OI build-up, suggesting this level as strong support. If the stock price drops, traders expect the 2,900 level to provide a cushion.

Put-Call Ratio (PCR): The PCR hovered around neutral territory, indicating that neither bulls nor bears have a dominant hold. However, increased volatility could be expected in the short term depending on broader market conditions.