Rajesh Jain of Pranav Securities is of the view that Reliance Industries will outperform in near term.
Jain told CNBC-TV18, "Reliance Industries will outperform in the near term and I would define near term as until the run up to the budget in 2007. First of all the diversification of businesses, tremendous news flows, fairly strong cash flows aside of the main business all of it waiting to get deployed. The retail business or developments on the gas trend, all these are news flows that keep this stock ticking and if we are really looking at a new high there is very little that one can expect that the stock will not participate in that run up.
He further added, "On the downside a Rs 100 fall is something that a long term retail investor can live with on it because the upside would easily be Rs 300 over the next year. In the run up to the budget if the market shapes up and sees good liquidity inflows and fundamental news developments, I see the stock giving Rs 200-300 gain."
Disclosure: Analyst has most of the stocks in his personal portfolio and as a broking house they have views on all of them therefore there is a direct interest.
