Reliance - Diwali BONUS!!

The news od Reliance giving a 1:1 bonus hit headlines . Reliance sure has a way to surprise markets and marketmen ... (many a times i wonder even Mukesh Ambani may be surprised later at his own decision)....

Is it a gimmick ? Or does Reliance really see a great future 3, 5 or 8 years ahead ??? (ooops Fibonacci numbers not intended!)

Whatever that may be , but today's market reaction was suggesting that players are not comfortable and sense something fishy ! ... Is it to counter ADAG ? Or is it a bigger strategy- may be of a global scale??? Possible.

Technically however in the short to medium term one may see some selling pressure. Investors who are convinced of the growth (or who are Diehard RIL fans) may use this opporunity to wait a while before jumping in to the stock.



One may be more comfortable buying the stock near to 1900- 1950. Also till it remains below the crucial 2200, upmoves will have selling pressures.

Happy Bonus grabbing !!

CA Rajiv D Khatlawala