RELIANCE COMMUNICATIONS (RCOM)
Monday, September 21, 2009 12:38 pmTECHNICAL REPORT ON RELIANCE COMMUNICATIONS
| BSEId :532712Â , NSE Id :RCOM, ISIN: INE330H01018 | INDUSTRY-Telecommunications – Service |
| Market Cap- 63,283.06 | Book Value- 131.75 |
| EPS (TTM) -11.51 | Price/Book -2.33 |
| Face Value -5.00 | P/E -26.64 |
| Div(%)-16.00 | Industry P/E -22.70 |
PRICE INFORMATION-
| All Time High    844.70 | All Time Low      131.10 |
| 52 Week High   381.45 | 52 Week Low      131.10 |
| RECOMMENDATION- SELL AROUND RS.310 | TARGET – RS. 275,250 SL 320 TIME FRAME -1 MONTH |
CHART INTERPRETATION AND RECOMMENDATIONS-
Reliance Communications is facing supply pressure around its reistance area ( around 310-320) . Although it managed to breach its hurdle twice in the month of September only but could not manage to close even a single session above it. RSI is also indicating a Bearish Divergence . As a matter of fact the stock started the rally on the back of good volumes and promising strength from 240 levels . After having a run up of around 30 % in one month , it is now taking a breather .
We have also seen the broader indices run up quite a bit in the recent months , so all in all we expect this stock to correct from here and hence recommend a Sell on the Stock for Targets around 275 and 250.