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15 Jun 2008

Reliance Industries: Indian share tip for week ending 20 June

1. Reliance Industries has been the saviour of the market by virtue of moving up from Rs 2,112 in previous week. Resistances for the stock exist at Rs 2,331 and Rs 2,401.

2. Weekly momentum indicators indicates bearishness and thus traders have to be cautious with the stock.


3. Reliance has the potential to fall to Rs 2,000 over the medium-term; where the stock has key long-term support and in case the stock is able to sustain above 2400 a bullish trend is likely to start in stock.

4. However a positive development for the stock is that Goldman Sachs has upgraded Reliance Industries to 'buy' from 'neutral' and has given a target price of Rs 2,700 on the stock and generally these big brokerage houses are rarely wrong in their assessment and thus it is unlikely going to go wrong with Reliance industries projections.

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