The stock market has been under tremendous selling pressure amid coronavirus crisis for the last few weeks. The market is still not out of woods. However, the price action of last few days shows that a short term base may be in place for some time now.
There are buying signals emerging suggesting for some stocks to buy. Reliance industries (RIL) is one such stock. It has seen a steep fall from the highs. Now, it is finding some support around 1020 price level.
The Reliance Industries stock has made a flag candlestick chart pattern which is a bullish pattern. Moreover, the stock is trading above 10 day exponential moving average (EMA) which indicates that upside momentum is building up in the stock. This is supported by positive crossover on moving average convergence divergence (MACD) oscillator (see the chart).
The stock may head towards ₹ 1165 and 1200 based on these parameters. Keep a stop loss just below 1020 for the trade.