RELIANCE seems oversold pre-earnings release. Great potential

RELIANCE RSI has approached nearly the COVID bottom. It had bounced up over 1200pts when it reached these levels the last time. If buyers step in, we may see a new base being formed.

The stock has been a favourite for investors so far as it's given short-term returns that midcaps & small-caps can only dream of. In fact, it was one of the fastest recoveries from COVID lows to an ATH.

After breaching 2300, RELIANCE hasn't had enough steam to continue its rally despite several important supports. This may be due to the overly positive sentiment earlier.

That combined with unfavourable news & uncertain business dircetion + no new exciting trigger, stock prices have come down ~10% from highs. But this also begs the question – is RIL forming a base? According to RSI, another 2000 retest may bring momentum to COVID selloff levels without any massive trigger or global selloff.

This may make it a good low-risk pick as the stock seems fundamentally strong.