Wait and watch Reliance Capital: Rajat Bose
There is no sign of any kind of improvement as such and it does not warrant any kind of investment as such at current levels.
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| Updated: Rajat Bose, rajatkbose.com, talks to ET Now on various stocks.
What is your call on Reliance Capital?
It was going down quite sharply only in the last five trading sessions. The movement has been pretty range bound within say 20 or 30 points and today the crack has once again surfaced with this news. But the fact that the stock is far removed from its 200 day exponential moving average.
The fall may be arrested soon and I am not expecting it to breach 350 because the 200 day exponential moving average is about 550 plus levels. So not much fall is expected from here but recovery although a short covering rally can happen going forward because prices are far removed from their moving averages. Other than that there is no sign of any kind of improvement as such. It does not warrant any kind of investment as such at current levels.
Not too much of an impact there on Reliance but overall market sentiments still going down?
If you look at a technical phenomena like this that suggests some kind of strength in the counter because there is a major negative news. Yet the stock is not reacting on the downside but a word of caution is here. Sometimes when the details come in, the reaction takes place.
So if there is no reaction even on Monday when the full details would be available for the news then we would say that Reliance sort of 720 would act like a bottom for sometime otherwise the weakness would surface and as it is even if it were to show some strength at current level.
It may not affect any big buying to actually cross that significant supply zone between 828 and 865 that is a pretty tall order at current levels. So nothing much is there as far as Reliance is concerned.
What is your call on Reliance Capital?
It was going down quite sharply only in the last five trading sessions. The movement has been pretty range bound within say 20 or 30 points and today the crack has once again surfaced with this news. But the fact that the stock is far removed from its 200 day exponential moving average.
The fall may be arrested soon and I am not expecting it to breach 350 because the 200 day exponential moving average is about 550 plus levels. So not much fall is expected from here but recovery although a short covering rally can happen going forward because prices are far removed from their moving averages. Other than that there is no sign of any kind of improvement as such. It does not warrant any kind of investment as such at current levels.
Not too much of an impact there on Reliance but overall market sentiments still going down?
If you look at a technical phenomena like this that suggests some kind of strength in the counter because there is a major negative news. Yet the stock is not reacting on the downside but a word of caution is here. Sometimes when the details come in, the reaction takes place.
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So if there is no reaction even on Monday when the full details would be available for the news then we would say that Reliance sort of 720 would act like a bottom for sometime otherwise the weakness would surface and as it is even if it were to show some strength at current level.
It may not affect any big buying to actually cross that significant supply zone between 828 and 865 that is a pretty tall order at current levels. So nothing much is there as far as Reliance is concerned.
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