Sunday, May 3, 2009

RNRL - A Traders delight ! Buy on dips and sell high

Source : businessline 03-05-09

Reliance Natural Resources (Rs 56.6): 

RNRL made a double bottom at Rs 36 in October 2008 and then in March 2009. Though the stock is attempting to stabilize around this support, it is encountering selling pressure around Rs 65.

Investors with a short to medium-term perspective can divest their holdings around Rs 65 since the stock can continue to trade in the band between Rs 35 and Rs 65 for a few more months.

The long-term trend however continues to be down and if the stock continues to meander in the range mentioned above, there can be another leg down that pull RNRL towards its life-time low of Rs 18. A weekly close above Rs 82 is required to signal that the medium term trend is turning positive. Subsequent target is at Rs 118.

Our Research Team Views :

Day High Low Rs.57-54.75  on 29th April 2009
Monthly High Low Rs.62-41
6M H/L Rs. 62-35

Sectoral Trend - Neutral

This share has risen sharply more than 80% in the last 2 months. The following  are the ideal ranges for buying and selling :

Buying Range : Rs.40-45

Selling Range : Rs. 75-80 short term

Wait for the price to the buying range on correction in the stock markets.

Holding period : 12-18 months
Returns expected : 100% plus

Equity Research Team

Intelligent Investor - Invest Advisory Arm of

Ravina Consulting
Bangalore India

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