RIL has support at Rs 2200: Manghnani

Anil Manghnani of Modern Shares & Stock Brokers is of the view that RIL has support at Rs 2200.

Manghnani told CNBC-TV18, "ONGC done its first down move, but it’s still weak. It’s just seen a retracement unless it crosses Rs 905 sort of levels and even on the upside I think it’s capped at Rs 975 maybe just a trading bounce."

He further added, "The one I am getting worried about is Reliance. Although it’s not broken the March lows of Rs 2,120 and it hit about 5-times in the last five-six months, keeps bouncing of that. God forbid the day it breaks below that, I think because even though the price is not eroding the technical indicators are getting weaker. For today maybe Rs 2,200 is a major support, a trading support. But from a trend point of view, it’s important that it doesn’t break Rs 2,120 because below that a lot of the traders would come in and short or even most of the funds have at least 5-6% of their portfolio in Reliance and they would also start getting jittery. It is a major indicator for the market when Reliance fall market tends to get, everything tends to fall with it and vice versa. It’s important going forward just from a trend point of view that Rs 2,120 is not breached."

Disclosure: It is safe to assume that analyst and his clients may have an investment interest in the above stock/sector.