By analyzing the 🇮🇳 #RELIANCE (Reliance Industries) chart on the 4H timeframe, we can see that the setup we published has been delivered in full. On 21 July we called the rejection from the Flip Zone and mapped the sell-side liquidity below as the destination — and we did it while the headlines were bullish and the crowd was buying the earnings pop. Price has since dropped −7.11% straight down into the SSL at ₹1,252.7. You can revisit the original breakdown here:

⏱️ 4H Timeframe
Every element of that call printed in sequence. The structure was bearish — a CHoCH followed by a BOS, with price respecting a clean descending trendline the entire way down. Price then rallied back into the Flip Zone (₹1,315.1 – ₹1,370.7), the former support now acting as resistance, and that is where we said sellers would step in.

Before they did, the market ran one more trap. Price pushed up and executed a liquidity sweep above the internal range highs — clearing the stops of everyone positioned short and pulling in late buyers at exactly the wrong moment. Then it rolled over. That sweep is what refilled the sellers, and from there the move was decisive: a −7.11% decline that broke the Demand Zone at ₹1,292.1 – ₹1,301.2 — the precise lower-timeframe trigger we named — and ran all the way into the sell-side liquidity at ₹1,252.7. Target reached.

Price has since bounced and is now trading around ₹1,305.0, back above that broken Demand Zone and pressing toward the underside of the Flip Zone. In my view this is a retest from below rather than a recovery. The liquidity beneath has been taken, but nothing about the higher-timeframe structure has been repaired — no bullish BOS, no reclaim of the Flip Zone, and the descending trendline is still doing its job overhead.

🎯 The Bias
Scenario A — the base case (continuation lower). My expectation is that this bounce stalls beneath resistance and the downtrend resumes. The first line of defence for the bears is the Flip Zone base at ₹1,315.1; as long as 4H closes stay beneath it, every push higher is a selling opportunity rather than a reversal. On rejection, the draw is back toward the SSL at ₹1,252.7, and beneath it the major pool we mapped at ₹1,116.6 remains the deeper objective. The logic is unchanged from the original idea: the market swept the liquidity above, took the liquidity below, and there is still a far larger pool sitting untouched at the bottom of this range.

Scenario B — the invalidation. I'll name it precisely. A decisive 4H close above ₹1,370.7 — the top of the Flip Zone — reclaims the level the bears have been defending and flips this structure bullish, with the Protected High at ₹1,488.8 as the ultimate line above. Anything short of that close is noise. And note the distinction that matters most here: a break is a candle close, not a wick. This entire move began with a wick above the range that trapped traders into believing the level had broken. Do not be the mirror image of that on the way back up.

📰 Fundamental Backdrop
This is where the story gets genuinely interesting, and it is worth being precise because the headline and the reality diverged.

When Reliance reported Q1 FY27 in mid-July, the coverage led with a record top line — revenue of ₹3,11,850 crore, up 25.4% year-on-year — and the stock popped roughly 2.5% to around ₹1,328. That is the number the crowd traded. But underneath it, consolidated net profit came in at ₹20,946 crore, down 22.4% year-on-year, even though it improved 23.4% sequentially from ₹16,971 crore in Q4. EBITDA rose a more modest 10.1% year-on-year to ₹54,067 crore.

Read those together and the price action stops being a mystery. Record revenue with profit down more than a fifth year-on-year is not the profile that sustains a breakout through major resistance — it is the profile of a stock that gets sold into strength once the headline enthusiasm fades. That is precisely what the Flip Zone rejection was, and it is why we flagged the conflict as a caution rather than treating the earnings pop as a reason to abandon the bearish read.

The bull case has not disappeared, and it deserves fair statement. Jio Platforms remains the growth engine, with revenue up 12% to ₹45,961 crore and EBITDA up 15.1% to ₹20,865 crore, and the filing of the Jio IPO DRHP is a genuine value-unlock catalyst that could re-rate the whole group. That is the single biggest risk to this bearish thesis: IPO news flow is unpredictable in timing and powerful in effect, and it could force the reclaim of the Flip Zone that Scenario B describes.

So the balance is this: the structure says lower and the profit trend supports it, but there is a live catalyst overhead that can override both. Respect the invalidation, keep the position sized for a headline, and let ₹1,370.7 do the deciding.

This analysis will be updated as the market evolves. If this breakdown added value, drop a like 👍 and a comment 💬 to support the work — and share where you see Reliance heading next! Best Regards, BigBeluga 🐳