Wednesday 5 November 2008

Reliance has resistance at Rs 1480-1500: Mathew

Technical Analyst, E Mathew is of the view that Reliance Industries has resistance at Rs 1480-1500.

Mathew told CNBC-TV18, "Reliance Industries has seen a magnificent rally and one can’t expect that everyday this stock is going to go up especially when you consider that we are now into a trading range and Reliance of course is a stock, which has a lot of bearing on the Nifty. One must realize that major resistance in Reliance is around that Rs 1,480-1,500 zone, which I don’t think is going to be very easy for the stock to overcome."

He further added, "Having said that I do feel that at lower levels, the Nifty may build a base and again an attempt maybe made by the Nifty to go up to 3,400 possibly. In that case, I am sure Reliance would also participate but even at that particular juncture, I really have my doubts whether it would be able to take out that huge supply zone, which exists between Rs 1,480-1,500. In fact for all those who have been lucky enough to get into a trading call in Reliance, I think that is certainly an area for to come out of all the trading positions."

Disclosure: Analysts associate company has sold out of the money Nifty calls.

Source: Moneycontrol

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