Reliance Industries can touch Rs 821, says Vayalar

Manoj Murlidharan Vayalar of IIFL is of the view that, Reliance Industries (RIL) has a good potential to rally to Rs 821.

Vayalar told CNBC-TV18, "Reliance Industries is one scrip which trades in a particular fashion. Since April if we see the way Foreign Institutional Investors (FIIs) are pumping money. They are buying two portions in the cash market, shorting one in the stock future and if apply the same logic to Reliance it has a weighted average price somewhere close to about Rs 782. Till the time the scrip is above that the delivery-based buying says that it has a good potential all the way to Rs 821. But to buy a call spread would be prudent because I guess somewhere to a Rs 795 odd. So, Rs 25 to Rs 30 for a call spread definitely on a scrip of Rs 800 seems prudent."