RIL to face resistance
Markets are trading at all time high. It’s good that one must be optimistic but remember over optimism can ruin a person’s holdings, especially in this market. Don’t take decision in haste, it’s a bull phase and buy on dips market. It’s a place of full of opportunity, but right thing at right time matters.
Let us focus on Reliance stocks.
Reliance Industries Limited (Last closed at 1122 as on 6/June/2014) operates multiple business segments, majorly in exploration and production, refining and marketing, petrochemicals, retail and Communication. Company has been ranked No.99 on the fortune global 500 list of the world’s biggest corporation as on 2013. Recently, reliance industries is to open offer to acquire a controlling stake in media group Network 18 and its subsidiaries will begin on 21st July and close on 4th august 2014.
Technically, Reliance industries will face strong resistance at 1150, and will try to drag this down towards 1100 to 1070 levels. But if it closes above 1150 for 2 to 3 days with positive bias, than it can sail smooth till 1190(for short term) and 1300 levels (for medium term). It’s a buy on dips stock.
Reliance power limited (Last closed at 108.75 as on 6/June/2014) is a part of reliance Anil Dhrubhai Ambani group. It was established to develop, construct and operate power projects in the Indian and international markets. Reliance power has won 3 ultra mega power projects (UMPPs) awarded by the Indian government. These include Sasan (Madhya Pradesh), Krishnapatnam (Andhra Pradesh) and Tilaiya (Jharkhand). UMPPs are a significant part of Indian Government which have taken initiative to collaborate with power generation companies to set up 4000MW projects to ease the Country’s Power Deficit situation.
Technically, Rpower has given a fantastic move from Rs.60 to Rs.110 in last 4 months. In coming time maximum this can ride its rally till 120 and will act as a strong resistance and can drag this towards 95 levels for sometime. But if it closes above 120 for 2 to 3 days with positive bias than 140 can be seen soon in short term and 185 is the target for medium term. It’s a buy on dips stock.
Disclaimer: The article is based entirely on technical charts and has not been taken from any source. The author is not responsible for any loss directly or indirectly arising out of any information given in this article.