Do not recommend Reliance : Sharyans Resources
Any upward rallies into the 990 to 1010 area will actually act as a resistance for the stock.
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| What is the call on Reliance Industries?
CK Narayan: Reliance prices have remained in a big range for a long time and recent times it had slipped lower than 1000 levels where it had been holding for quite a while. So support once being broken it will actually reverse its role to act as a resistance. So any upward rallies into the 990 to 1010 area will actually act as a resistance for the stock. We were looking at about 960 to 965 as the minimum pullback that the share should give and we will see the price having been attained today. It has not gone down from there, serious downgrade notwithstanding but from here up to about 985, it may be a little bit of heavy going if at all and I really would not recommend a buy on the stock.
It is one of those stocks which has slipped out of traders’ radars. It slipped beneath some support levels and it will have a trying time getting back into action again. So if I am a trader who is holding a long position, this is where I would either look some book profits or make my stops tighter. If I miss the bus, I will let it remain missed and if I am looking to short, I will wait for some weakness to appear.
CK Narayan: Reliance prices have remained in a big range for a long time and recent times it had slipped lower than 1000 levels where it had been holding for quite a while. So support once being broken it will actually reverse its role to act as a resistance. So any upward rallies into the 990 to 1010 area will actually act as a resistance for the stock. We were looking at about 960 to 965 as the minimum pullback that the share should give and we will see the price having been attained today. It has not gone down from there, serious downgrade notwithstanding but from here up to about 985, it may be a little bit of heavy going if at all and I really would not recommend a buy on the stock.
It is one of those stocks which has slipped out of traders’ radars. It slipped beneath some support levels and it will have a trying time getting back into action again. So if I am a trader who is holding a long position, this is where I would either look some book profits or make my stops tighter. If I miss the bus, I will let it remain missed and if I am looking to short, I will wait for some weakness to appear.
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