RIL shares hit 16-month low, here are key technical levels to watch 

Shares of Reliance Industries Ltd (RIL) slipped to their 16-month low on Monday amid weakness in the broader market. Global economic uncertainties, weak corporate earnings and persistent foreign institutional investor (FII) outflows are among major factors behind the crash in RIL stock. 

RIL shares fell 3.63% to Rs 1,156 against the previous close of Rs 1,199.60 on BSE. Around 16 months ago, RIL shares fell to an intra day low of Rs 1,155.82 on November 13, 2023. Since then, market heavyweight has traded higher. Meanwhile, market cap of the firm slipped to Rs 15.73 lakh crore. Total 2.74 lakh shares of the firm changed hands amounting to a turnover of Rs 32.18 crore on BSE today. The stock hit a record high of Rs 1608.95 on July 8, 2024. The large cap stock is down 28% from that high, considering the low of Rs 1,156.   

RIL stock has lost 5% this year and fallen 23% in six months. The stock has a beta of 1.2, indicating high volatility in a year.  

In terms of technicals, the relative strength index (RSI) of RIL stock stands at 36.2, signaling it's trading neither in the oversold nor in the overbought zone. RIL shares are trading lower than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

Jigar S Patel from Anand Rathi is bearish on the stock. "Reliance has broken below the long-standing Rs 1,200 support level in the current session, a key threshold for its price stability. If the stock fails to close above Rs 1200 on a weekly basis, it could signal a bearish range shift. This would establish Rs 1200 as a new resistance level, with the stock likely trading within a lower range of Rs 1100-Rs 1200. Such a shift could indicate further weakness, prompting sellers to dominate while buyers may wait for confirmation before stepping in. A sustained move below Rs 1200 could increase downside pressure, making Rs 1100 the next crucial support to watch," said Patel. 

Mandar Bhojane, Equity Research Analyst at Choice Broking said, "Reliance Industries stock is testing its weekly rising trendline and has formed a strong bearish candle with high volume, indicating selling pressure. A decisive break below Rs 1,150 will confirm further downside, with the next major support levels at Rs 1,080 and Rs 1,048. On the upside, immediate resistance is seen at Rs 1,200 and Rs 1,250. The broader trend remains weak unless the stock sustains above key resistance levels.  
Traders should closely monitor the Rs 1,150 level, as a breakdown will likely trigger further correction. For any bullish reversal, the stock needs to sustain above Rs 1,150 and form a strong reversal pattern. A breakout above Rs 1,200, the 200-EMA level, would confirm a shift in momentum, providing a potential buying opportunity. Until then, caution is advised, with a preference for downside levels unless a clear reversal signal emerges."