Bullish on RIL, 5%-10% upside likely: Sajiv Dhawan, JV Capital

In a chat with ET Now, Sajiv Dhawan, MD, JV Capital Services, shares his views on Reliance Industries Limited.

ET Now: At the current juncture, do you think the risk-reward ratio currently is in favour of Reliance Industries?

Sajiv Dhawan: You may see 10% upside if sentiment improves. From the foreign institutions viewpoint, the stock has been a great underperformer. The recent run up has also been sold into but they really need that stock to perform to take the Nifty to 6000 mark.

That is one of the big laggards over the last couple of years and if Reliance, for some reason, got a lot of buying interest from these foreign institutions, you could see that to be the real sentiment booster for the market.

So from a fundamental perspective, you could accumulate, I would be overly aggressive on the stock. I do not see it racing to Rs 1000 in the next few months but you could certainly see maybe a 5% to 10% sort of uptick over the next couple of months and at that stage again, I would look to probably lighten up.

The floor price is around Rs 700. So wee may see a 5-7% downside and a 10% sort of upside over the next few months.