Monthly Archives: March 2017

Have “Reliance” on “Jio”

Reliance Industries has been one of the most under-performing stock in Index since the 2008 Crisis but finally we are hoping for a turnaround i…You feel the recent rally from 1000-1335 is enough for now?….Naaaa..The Game has just begun today

Reliance industries is not just technically undervalued but also fundamentally. Lets have a look at Fundamental snapshot

Though am not a best Fundamental analyst but what i can understand from above figures is that sales have increase 119% with profit rising 40% which are the most crucial numbers to arrive at market price but still the stock price has just risen 12% during this last 9 years. The best part what i understand is that indicators which affect PAT, which is GRM, Crude prices and USd-INR, all have been negative but still PAT was sufficient to grow at health rate. Now when we expect Crude prices to rise globally with Rupee getting strong, am sure GRM would increase PAT for the company from Current levels. This is surely gonna help to shoot up Reliance’s Oil business.

BUT the cherry on the top would be Reliance Jio.  As you all could notice in Businesses row, company has added so many businesses in last 9 years and from tomorrow its biggest investment Reliance Jio would start giving fruits. Almost all fixed investment and expenses on Reliance Jio has been discounted with 0 revenue. But from tomorrow revenue of Jio would be start flowing in which would raise bars of PAT in next quarter. So you must have Reliance on Jio.

Now coming to some Technical know-hows, today Reliance has managed to close above 1320 after 9 years where we last saw close at 1320 on 21st May 2008.  This was the reason why we took comparison of 2008-2017 in the above table.

 As you all could notice in the chart above, Reliance has given a Flag pattern breakout today with high delivery volume with highest closing in last 9 years. Flag pattern breakout almost gives another lap of equally fast rally as we saw just before profit booking in march. Which means we are moving for 1550 on stock within next 3-5 weeks. So now the stock is going to be purely a out-performer even at this levels.

So strategy would purely be BUY for tgt 1550 sl: 1200 for traders while investors can accumulate for nexr 3 months until Jio revenue gets reflected on balance sheet. Stock could surely be a multi-bagger for long term investment.


Better late than Never!

Good evening Readers. Last 3 weeks have been pretty much of a rally and it was difficult to say we wont get any correction until we opened gap up after UP results on  this Monday. Many of my blog followers would have felt they lost money as i was bearish on Nifty since my last post on 27th Feb? ….BUT THATS NOT TRUE… Why? …My strategy was to Short Nifty (8890) 8890 and Long reliance (1180). So strategy Finally closed today with Reliance hitting my than tgt 1325 and Nifty triggering stop loss at 9150. 

Profit on My strategy

Buy                    Sell                Margin                 P/L (for one Lot)

Nifty                    (SL) 9150                8890                55000                     -19500

Reliance                   1180               1325(tgt)            85000                    + 72500

So Net payout: Rs. 53,000 

So above strategy was a perfect example how a spread strategy could be the best thing to trade to avoid any side trend

Now what next after such a bullish closing?….

We have got the perfect Inverted H&S breakout on Weekly chart with Runaway gap up on Monday on back of UP results.. Though m posting a day early for a confirmation but it seems we will get breakout above neckline at 8980. And interestingly pattern target is coming up to 10600 minimum if we sustain above my stop loss. So now its better late than never. If you guys still feel left out of markets or investment , enter now with part investment and may be some after few months. But you must surely invest stock specific at current levels for long term. Few good stocks to invest are Tata Steel, Reliance and Sun Pharma. Want me to design your long term portfolio than can mail me at

Strategy for traders:

Buy 1 lot of Nifty at CMP tgt 9350 and SL 8980 and buy 1 lot of tata steel with tgt 550 sl 480 and maximum loss: 52750 if you strictly follow my strategy.

Thank you readers for following my blog! Happy trading with strict stop loss.!