SP Tulsian cautious on Reliance Industries

Tulsian told CNBC-TV18, “In Reliance Industries I have been keeping my view of about Rs 800-815 on the stock. So, I am definitely not convinced. Second reason that stock has really ran too much ahead of its Q2 numbers, which will definitely be seen quite cautiously by the market. So, these two events are not giving any comfort."

He further added, "If you see the buyback program because all along we have been talking for about last three, four months that buyback has really acted as a big cushion or support for the stock, but since the buyback the company has carried out a of about 3.9 crore shares at Rs 715. Even that possibility seems to be coming to an end because company will definitely now not be to aggressive though the price has exceeded Rs 870 their limit. Even if I presume that the share price comes back to about Rs 820-825, I don’t think that the buyback process will again start very swiftly by the company. So, we will not be seeing that."

"Ahead of the Q2 numbers I will definitely be keeping my cautious stance because any kind of correction can make the share to correct the way we have been seeing now in ITC, HUL, pharma stocks. So, may be some delivery based buying by the overseas investors may have led to this rise. However, I am not comfortable, I will keep my cautious view because have been keeping a target of Rs 800-815."