Short-term traders can look for Rs 650-660 on Reliance Capital: Sharyans Resources

In a chat with ET Now, CK Narayan, President Treasury, Sharyans Resources, shares his stock ideas.

Reliance Capital has emerged a big mover today. Is it likely to do so in the future as well?

It would be pretty optimistic to say that it is likely to remain a mover for a few months because the stock is in a very strong bearish trend on the downside. It has been seeking lower bottoms very forcefully, and has fallen short on successive attempts to rally. The situation is no different, leaving aside the fact that over the last about 5 to 6 sessions, it has been one of the better trended stocks of the market. So, from that perspective, traders might have had a ball. But other than that, you really do not have anything much to offer.

If this news about Nippon Life Insurance signing an agreement to acquire 26% stake in Reliance Life Insurance should pan out well for the stock, we might see a move till about Rs 650-660. It is reaching former supply zones and I would reckon that these supplies are not really going to run away just because the deal has been done. There are far too many other problems surrounding the group which may prevent individual stocks from seeing far too high during rallies. I would be happy to take what the market offers me right now. Rs 650-660 is what I am looking at on the higher side if and when the stock gets it, I would be looking for signs of supply resuming or resistances emerging and acting and I would be happy to take some money off if I were a trader in this stock.