Investors of RELIANCE INDUSTRIES should not be concerned after yesterdays selloff. Because if you hold it for long term then this is the zone to enter rather to exit. We saw RELIANCE moving up from 900 to 2300 since the month of April. So current fall should be utilized to enter if you missed the rally. If Law of Causation is considered then the reason of current fall has nothing to do with any reason which impacts the Business or its Growth in present as well as in Future.
Everyone on street is aware on the buzz on the week health of Mr. Mukesh Ambani everyone has their own unverified inputs in Media. But family so far has not provided any clarifications on this matter yet. The chairman has not visited the office since early september. Hopefully he gets fine if he is not well. But this should not be the reason to sell out your holdings. It’s just negative sentimentally the simillar velocity of negative sentiment in past were observed with INFY and ICICI BANK. And these stocks bounced sharply after reacting.
As far as levels are concerned from current levels it has to cross 1970 to stabilise and 2020 to give a breakout again. In early october I gave 2400 and 2490 targets on upside with supports in the zone of 2120 to 2150 it has been a sharp decline below these supports. Because I always prefer RELIANCE in cash i still holds it for higher targets. To protect from further correction need to purchase January OTM Put and leave it. There is a possiblity of test of 1680 to 1760 if it doesn’t stabilise here.
gann,insides 