One can enter in Reliance Communications (RComm) around Rs 88-86. Stock is expected to test the level of Rs 104, says Manoj Murlidharan Vayalar of IIFL PReMIA.
Vayalar told CNBC-TV18, "Right from Rs 67 RComm has gone up to almost Rs 97-100 mark. So this is a big move for the stock which has come in. Needless to say the cash based buying has happened and the quantum of derivate buying which happens on those days and a series of news has come into this stock."
He further added, "I feel this is a time we should wait because the weighted average price of Rs 88-86, if we are getting that, that is the right time to enter RComm. One should not be buying at this point of time the reason is because obviously Rs 102-103 one will see distribution which would happen because now in the next contract one will see this cash based buying which is bought at Rs 86-84. You would see a reverse shorting in the stock Futures which would happen. So every time it comes to that weighted average price of Rs 86-88 it becomes an excellent buy. You can go long on that, there you can expect at least Rs 104 on that."