Thursday, 20 November 2008

Downside left in Reliance Industries: Mohindar

Rahul Mohindar of Viratechindia is of the view that there is downside left in Reliance Industries.

Mohindar told CNBC-TV18, "On a daily or a weekly timeframe, Reliance Industries is definitely still in a sell mode and if we look at the last two months of volume than before which means that his fall has come has definitely got very strong accompanying volumes, we are not out of the trouble yet, Rs 1080 to Rs 1085 was the key level which is broken down today and it is not a good sign. We were holding that level over the last few sessions but a breakdown of this level does indicate that we have a high probability of testing levels in the region of Rs 950 to Rs 970 which means virtually close to the previous lows and there is a strong possibility that we may even break those lows."

He further added, "From a technical stand point, the short term does very weak and if such a stock does look weak it’s definitely going to pull down the index as well. But from a slightly longer term point of view if Reliance does make new lows one needs to investigate at that stage how the volumes shape up and then look at a long term strategy. At this stage I still feel downsides left."

Source: Moneycontrol

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