Here are the next key levels for Reliance Industries on the charts

The stock closed lower for the third day in a row on Monday and lost more than 5.5% during that period.

Reliance Industries commands a 10.5% weighting on the Nifty 50 index and any significant movement in the stock would also be directly proportional to the direction of the index.

Since the March 8 close, the Nifty 50 index has fallen by exactly 600 points. A sixth, or 104 of them, come from Reliance Industries.

Shares of Reliance Industries are down more than 11% so far this year.

Kunal Shah of LKP Securities believes that the stock closed below its key support level of Rs 2,300, but there needs to be a follow-up selloff to confirm a trend. “If it doesn’t happen, it could also be a false outage,” he said.

On the downside, he sees next support for Reliance at levels of Rs 2,185, which is yet another Rs 100 below its current levels. Upside resistance is seen at Rs 2,420 but in the immediate term resistance will be at Rs 2,360. “There are several hurdles on the upside,” he said. He advises traders to sell on every rise.

Chandan Taparia of Motilal Oswal also pointed to Rs 2,300 as key support for Reliance, below which he sees a downside towards levels of Rs 2,220.

Shares of Reliance have bounced twice from support levels of Rs 2,300 to Rs 2,290 in the recent past, observed Ruchit Jain of 5paisa.com. However, he said that if the stock is followed by sales, there could be an unwinding of long positions, which could take the stock towards Rs 2,240 – Rs 2,210. “Short-term traders should avoid the bottom fishing until this vent turns out to be a false vent,” he said.