The markets continued to be directionless, sawing violently through the day. Global cues too were inconclusive, denting investor confidence. The Nifty closed at 5,913 down 23 points, while the Sensex shut shop at 19,701 down 167 points.
Rajat Bose of rajatkbose.com is positive on Relaince Industries, Ambuja Cement and RNRL.
Here’s how Rajat Bose views the stocks on board:
On Reliance:
Reliance has broken 3,000 levels. We need to see if it goes to about 2,975 and stay there, then maybe 2,910 might well be tested. Actually, the level between 3,050 and 2,800 is kind of a congestion zone for Reliance, so shorting here may not be advisable. Reliance has a track record that on most result days, it opens higher and closes lower. I thought that today it may be a bit different but it isn’t. At these levels, it has already entered that congestion zone, so maybe some kind of lower momentum fall is likely in this.
On Ambuja Cement:
Technically, it was showing hammer lines at least twice and then they got broken. Each time it was giving signals as if the bottom has been reached and now it will bounce back. But it isn’t showing the real bounce back, so I would be more watchful. I would rather sacrifice 10 points and buy above Rs 140 when it sustains there. Otherwise, Ambuja at this point of time is not showing that much of attractiveness from the technical prospective.
On RNRL:
Except RNRL, I wouldn’t be playing long in any of the Reliance pack. RNRL has got technical and relative strength compared to the whole group; it shows the best performance there. Unless RNRL breaks Rs 208 on dips, one can still go along. While Reliance can actually go down, the severity of the fall may not be there because it has already entered a congestion zone.
On Reliance Capital:
Reliance Capital showed quite a bit of promise this morning. However, it sold off after that. Chances are that you may see about Rs 2,520 levels.
On Reliance Energy:
Reliance Energy is trading weak as the whole power sector shows weakness. My target of Rs 2,050, maybe reached in the short-term.
Disclaimer:
It is safe to assume that my clients and I may have an investment interest in the stocks/sectors discussed.
Source: Moneycontrol.com
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