Reliance Communication jumped up 7% today. Nice fat profit in a day.
Take out your profit or scale up stops.
Find Nifty outlook and RCOM update below.
In the previous post I had suggested that Nifty or the broader market is trying to find a clear direction amidst the volatility. Well, the Nifty(future) has closed above the crucial level of 5080, which suggests a small term trend upto 5180 is in place. The discount between the nifty and nifty future has also decreased substantially, which suggests a little bit of short covering too. A lot depends on the world markets too.
Now the next logical resistance for nifty seems to be at 5180, but mind well, that the choppiness is likely to continue. I suggested to keep booking profits around these levels and continue to do so. Markets have uncanny habit of reversing the trend, albeit temporarily, on Fridays. If you trade in nifty futures, keep a stop below 5075 and keep holding longs.
As anticipated, RCOM is performing according to our expectations. Todays close which is above a crucial level of 160 suggests the trend may continue for coming days. Participants can now move their stop loss point to 160 level and hold their longs. I won’t be surprised if from tomorrow big brokerages houses and analysts start giving a buy call on telecom sector and in particular RCOM!
Happy trading !
Dhaval Shah-Anish Salat
Investment Academy | Baroda
E mail: firstname.lastname@example.org