http://www.thehindubusinessline.com/iw/2010/06/20/stories/2010062050660700.htm

*Sizzling stocks: RNRL (Rs 62.7) *

**

**

**

**

**

**

**

**

**

All eyes in the market were riveted on RNRL last week as the stock zoomed to
the high of Rs 70.2. Expectation of an announcement in the RIL's annual
general meeting about RIL buying a stake in RNRL at a high price was the
ostensible reason behind this rally. But once this hope was dashed, the
stock declined to Rs 62.1 on Friday.

The stock has strong resistance around Rs 70 in the short-term. Inability to
move above it will denote a propensity to decline to Rs 60 or Rs 53 in the
weeks ahead. Investors with a long-term investment horizon can hold the
stock as long as it trades above Rs 52. Those with a shorter perspective can
book some profits at current levels. Fresh trading long positions are
advised only on a close above Rs 70. Subsequent targets are Rs 77 and Rs 86.
*Reliance Capital (Rs 733.9)*

Reliance Capital created waves last week on the announcement that it was
buying 18 per cent stake in Bloomberg UTV. The stock turned red hot right
from the outset as it soared 6 per cent higher on Monday. It built on this
gain to rise to the intra-week peak of Rs 774 on Wednesday. But the sell-off
on Friday pared some of the gains resulting in 7 per cent weekly gain.

This is one of the badly bruised stock of 2010 as it declined 28 per cent
for the year when it recorded the low of Rs 611 in May. A short-term uptrend
is in motion since this low that could face resistance at Rs 786 and Rs 900.
Since the stock is reversing lower from the first resistance, short-term
investors can take some money off the table.

Stop-loss for short-term investors can be at Rs 708 while medium-term
investors can hold as long as it trades above Rs 600. — Lokeshwarri S.K.

-- 
You received this message because you are subscribed to the Google Groups 
""GLOBAL SPECULATORS"" group.
To post to this group, send email to [email protected].
To unsubscribe from this group, send email to 
[email protected].
For more options, visit this group at 
http://groups.google.com/group/globalspeculators?hl=en.

Reply via email to