Divergence in stock charts refers to a difference between the movement of a security's price and its momentum indicators. This difference can be bullish or bearish, depending on the direction of the price and momentum. In technical analysis, divergences can be used to identify potential trend reversals or confirm existing trends. Bullish divergences suggest a potential for upward price movement, while bearish divergences suggest a potential for downward price movement.
Reliance is going to be a big beneficiary for exporting to European countries. It is getting crude from Russia at low rates and is refining and then sending to European countries.
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Present downtrend in Reliance is due to windfall tax imposed by govt which will get offset by approx $12 profit per barrel in refining margins.
Reliance is showing the positive divergence is in action on daily chart one can use 2293 as stop loss for short term projection 2390/2440 in next 10 to 15 session.
Update
Reliance close above 2360 spot opens for 2440 as next projection and once we get close above 2360 that time 2330 becomes its new pattern negation level instead of 2290
