Thursday, 6 November 2008

Hold Reliance Industries: S Agarwal

Sanjeev Agarwal, equity-head of Globe Capital Market is of the view that one should hold Reliance Industries and add on declines.

Agarwal told CNBC-TV18, "We had recommended selling Reliance Industries at around Rs 2300 and we had told that this share is going to be the leader of the fall and if you see that Reliance has been the clear leader of this fall, ICICI Bank and Reliance has accounted for maximum damage for Sensex as well as in the Nifty. What we had given yesterday a definite call for a sell and upto a level of Rs 1200 to even Rs 1100 it may come but definitely there is absolutely no sense to get out of this stock at this level because what we are seeing as I told you that the market is likely to bottom out somewhere around at 2750 to around 2630 and Reliance is going to be the leader of the rally and this share is actually moving in tandem with the Sensex or it is moving with the Sensex if you say like it has been leading both the indices."

He further added, "This year is going to be the instrument in the bounce back and definitely we are going to see the bounce back at least minimum to around Rs 1750 levels on the upmove and overall if this share is able to hold above Rs 2,000 then the next upmove will start. But in this move we may go up to around Rs 1800 or Rs 1900 and after that there maybe a correction again for about 2-3 months and as a long tern investor you shouldn’t be looking at this level to get out and these are the levels where you should be adding to your position for a long term gain. So definitely my view is to hold and add up on the down folds."

Disclosure: It is safe to assume that analyst and his clients may have an investment interest in the above stock/sector.

Source: Moneycontrol

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DISCLAIMER: The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments.