Real support for RIL to come around 700-750: Ashwani Gujral
So it is not unlikely that we will fall below 800 and once a stock keeps going lower and lower, more people exit and it becomes a self-fulfilling prophecy, so real support only comes around 700-750.
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| Updated: In a chat with ET Now, Ashwani Gujral, Chief Market Strategist, ashwanigujral.com, talks about RIL.
ET Now: Is it too early to talk about your level of sub-800 for Reliance or that’s realistic?
Ashwani Gujral: If it was a cyclical business issue, you can expect turnarounds. But in this country, inquiries happen and they take forever to complete and during that period, a lot of people log out and you would much rather be in a stock, which has no controversy than one which has controversy. So it is not unlikely that we will fall below 800 and once a stock keeps going lower and lower, more people exit and it becomes a self-fulfilling prophecy, so real support only comes around 700-750.
ET Now: Is it too early to talk about your level of sub-800 for Reliance or that’s realistic?
Ashwani Gujral: If it was a cyclical business issue, you can expect turnarounds. But in this country, inquiries happen and they take forever to complete and during that period, a lot of people log out and you would much rather be in a stock, which has no controversy than one which has controversy. So it is not unlikely that we will fall below 800 and once a stock keeps going lower and lower, more people exit and it becomes a self-fulfilling prophecy, so real support only comes around 700-750.
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