920 levels of Reliance could be game changer: Vijay Bhambwani

In an interview to ET Now, Vijay Bhambwani, Author, CEO, BSPLindia.com gives his view on Reliance.

What are your quick thoughts on Reliance at 880 thereabouts and whether or not it still makes for a good buying price?

Much would depend on your perspective. If you are looking at 6-9 months timeframe, yes, Reliance could indeed be a buyer at 880 provided you are willing to expectedly stay in the stock even if it goes all the way down to 820 odd levels.

But, if you are a short-term trader, this counter is looking a little toppish at this point in time. You would basically expect it to move down by 15-20 bucks before you start to get your feet wet in the water.

On the flipside, a breakout above the 920 levels could be a game changer for the short to medium-term traders because that would basically initiate a flurry of short covering or what we call a bear squeeze and take it all the way up to 965-980 levels. So, if you are patient, you will get somewhat lower levels before you can start sinking your teeth into the counter.