Reliance is the stock to watch: Prakash Diwan, Altamount Capital Management

In a chat with ET Now, Prakash Diwan, Director, Altamount Capital Management, shares his views on Reliance stocks:

ET Now: From the oil and gas basket, what would be a favourable pick vis-à-vis an ONGC and Reliance Industries?

Prakash Diwan: Reliance may not be participating today, but clearly we have seen in many sessions that the kind of strength it has been gaining.

The weak rupee is definitely going to be extremely positive once the results come out in first half of October. Reliance could presently surprise the street with some really good growth on the GRMs at least in rupee terms. It also benefits tremendously from the kind of scaling up its PFI business had started about two quarters back.

Additionally, if we have some announcement on the gas discovery, that itself could change things dramatically. Hence, Reliance is the stock to watch.

It is going to be one of the biggest movers on the Sensex and the Nifty going forward. The kind of strength that it has does not seem to be weakening even when people have started moving out of the market. Reliance was never over owned and that is exactly why it has come to its rescue. My choice is distinctly Reliance all the way to may be 1000 plus levels now.