RIL Bonus: What investors can do

Reliance Industries (RIL) shares are seen rising 3% in early trade on Thursday, following the announcement of a 1:1 bonus share

But many brokers are advising their clients to cash in on big upmoves, if any, as the stock is likely to perform in line with the market in the near term. RIL shares closed at Rs 2,099 on Wednesday, down 1.6% over the previous close.

“The stock may see some resistance around Rs 2,300 and above, as investors are likely to book profits,” says Gurudatta Dhanokar technical analyst & derivatives strategist, Almondz Global Securities. “The immediate short-term support levels stand at Rs 2,050 and Rs 2,000,” he said. Mr Dhanokar advises traders to go long on the October futures in case the stock price falls below Rs 2,080 in the next few days.

Over the past one month, RIL shares have risen nearly 5%, in line with the benchmark 30-share Sensex. The stock has the highest weightage — at close to 23% — in both the Sensex and the 50-share Nifty.

“There are no positive surprises expected on the earnings front. So probably, the generous bonus issue could be a way to assuage investors,” said an official at an institutional brokerage who did not wish to be named.

Courtesy:economicstimes.com

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