Buy Reliance Ind; sell Kotak Mahindra Bank: GEPL Capital

Reliance has been an underperforming stock since quiet some while now. However, lately, it has registered a break out of an almost two month old consolidation and appears at the cusp of a break out above a declining Trend Line connecting its earlier prominent swing highs. The stock appears ripe for a sharp upmove till 780 and even 800 over the coming few weeks. We recommend a buy at present levels and on declines till 730 for an upside potential of 780 and higher.

Kotak Mahindra Bank has registered an impulsive decline on the chart; however it is near important support levels and appears ripe for a counter trend bounce till at least 552 to 555 range. Any move higher may be an excellent opportunity to exit the stock for investors. Aggressive traders may short sell the scrip on a bounce near 555 560 with a stop loss of 588 for a downside potential of 470 over the coming few months.

Public holding more than 90% in Indian cos

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.