Mr. Aamar Deo Singh, Head Advisory, Angel Broking Ltd
Benchmark indices hit record highs in today’s trading session with Nifty touching all-time high of 15,573 intraday, led by Reliance, which has broken out of the consolidation zone, and since it has a major weightage in Nifty, its positive movement is bound to be good news for the markets. Banking & IT stocks have also supported the current rally, including the likes of SBI, ICICI Bank, Axis Bank, TCS & Infosys, to name a few. Even the derivatives data continues to be extremely bullish, which further adds to the up move. And all this on the day, when Asian markets remain weak. Receding lockdown fears and hope of better economic recovery in coming quarters, is supportive. However, as markets are at record levels, they generally tend to be extremely volatile, so caution should not be abandoned.
Reliance industries gained 8% in the last 2 trading sessions. Is it a good time to buy?
By Mr. Yash Gupta Equity Research Associate, Angel Broking Ltd
We have seen a major consolidation in Reliance industry in the last 3 months and stock under perform in Nifty, In the last 3 months Nifty has rallied 900 Points while Reliance has corrected by 2% despite Reliance Industry being the highest weightage stock in Nifty.
Commodity price in the International market is in upward momentum, same as with petrochemical products prices also, almost all petrochemical products at yearly high by this company realization will improve along with EBITDA margins for the next couple of quarters. As per the market news to disinvestment BPCL government may give some relaxation in FDI rules & regulation to sell 52% holding of government of India in BPCL Limited, any positive news will be positive for Reliance Industry also.
We expect the stock to be in upward momentum and may touch the levels of 2200 – 2250 in the coming week.
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