Slight downward bias in Reliance: CK Narayan

CK Narayan, Growth Avenues Asset Advisors, talks to ET Now on Bharti and Reliance stocks.

What is the call on Bharti and Reliance?

Both of these stocks have been largely range bound if you were to look at it from a medium term kind of perspective. They are into multi-month consolidations. In case of Reliance, there has been a downward bias. In the case of Bharti, there has been a slight upward bias.

That is the major difference between the consolidation situation. As far as Reliance is concerned, it has been reacting to that recent news about the reduction in the GRM margins from Singapore and the stock had dropped down pretty sharply and it would be trading somewhere near the support zone.

So, I am not really looking for too much more on the downside especially now that the market has also moved up into an upswing. I do not really think there will be too much downward pressure on Reliance from hereon.

As far as Bharti is concerned, it is in a range. It seems to be quite unable to get past that 400 to 410 region. Clearly there are a lot of sellers in that region but then again at the lower side, somewhere around 380-390, the bias come in.

So, it has formed for itself a small range between about 390 to 405 and traders who wish to play that sort of range would maybe find an ideal candidate in Bharti.