InvestorQ : Downside for Reliance upto what price?
kayyappa made post

Downside for Reliance upto what price?

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seema Upadhyaya answered.
1 year ago


It is always hard to precisely pinpoint the downside risk on any stock but in case of RIL, one can safely assume that the downside risk is not too high. If you look at the latest results, there has been pressure on the petchem margins front but the GRMs on oil refining continue to be twice the Singapore benchmark GRM. The company has made rapid strides on the retail front and even though the ARPUs on the telecom business is down, Reliance Jio has expanded market share to emerging as the second-largest telecom player (ahead of Bharti Airtel). 

However, you may have to be a little tempered in your upside expectations as the stock has rallied substantially in the last 2 years. At a market cap of nearly $110 billion, it will take a big effort for RIL to move up from these levels. More so, considering that the free cash levels are the lowest in RIL in many quarters. Also, the impact of debt on Jio is yet to be fully factored into the calculations. Downsides may be limited but even upsides may take some time coming.


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NK answered.
1 year ago


1175 is a good support for it ..it can bounce from there..keep a close watch


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NK answered.
1 year ago


As per technical,it has closed below its 200 DMA i.e 1230 level..which is a sign of weakness.now going forward 1198-1175 band will give it a good support from where we can expect a bounce..trade safe