Reliance is still in a range: Deepak Mohoni

Deepak Mohoni, Director, trendwatchindia.com, in a chat with ET Now talks about his stock ideas.

What is your take on Archies?

This is not that heavily traded and the move is fairly recent one. If you look at what Archies has done since the beginning of the bull market, it has gone up about 4 or 5 times. But you have stocks like Tata Motors which have done twice as well.

So when you have large caps which are comfortably outperforming a small cap which does not trade very much, the option should be to go for those large caps especially in the state of the market right now.

What is your take on Idea Cellular? There is the sudden pickup in the stock right now?

It is indeed something that has happened in the last 5 or 10 minutes, large volume as well. But if you look at what Idea has done in the last 2-3 months, many of its moves have been like this. There is one huge spike and then it tends to stay where it is. So it has made its progress like that in the last 2 or 3 months.

What is the call on Reliance?

If you look at Reliance over the last 2 years, it has been in a range. The lower end of the range is a little over 800. Higher end is about 1200. Now that is a large range but for 2 years, it is not really that impressive. So this move is going on but it is still in that range. It is not out of it.

So if market persists in going up the way it is then Reliance will stand a good chance of finally breaking out upward from that range but if the rally tops out by the time Reliance gets to 1150-1200, then we will have that repeat of the same story we have been seeing now for 2 years almost. It comes around and then falls again.