Reliance Industries: Institutional Buying Signals Strength, But Key Resistance Lies Ahead

$RELIANCE witnessed strong buying interest after the stock surged nearly 3.5%, supported by multiple block deals executed at a premium to the previous closing price. The rally also coincided with the stock reclaiming its 50-day moving average, a key technical indicator that often attracts momentum buying from institutional and technical traders. From a technical perspective, the daily chart shows improving price structure. The stock is now trading above its 20-day, 50-day and 100-day moving averages, indicating strengthening short-term momentum. The RSI has also improved to around 56, suggesting buying strength without entering the overbought zone. However, the major hurdle remains the 200-day moving average near ₹1,410-1,425, which is acting as an important resistance level. A decisive close above this zone could confirm a medium-term trend reversal and open the path towards ₹1,450, followed by ₹1,500. On the downside, immediate support is placed around ₹1,370, while stronger support is seen near ₹1,335, which also coincides with the 20-day EMA. Overall, the technical setup has turned moderately bullish after weeks of consolidation. The combination of institutional participation through block deals and improving momentum indicators has enhanced investor confidence. However, sustained buying above the 200-day moving average will be crucial to validate a stronger uptrend, while any rejection from this level may trigger short-term profit booking before the next directional move.