Reliance Industries has good support at Rs 720-725: Tulsian

Reliance Industries has good support at Rs 720-725, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, “Reliance Industries, I don’t think that the arbitration proceedings or the litigations which has been existing there is seen as a negative now for the stock.”

He further added, “If you take a call on the share buyback upto 30th April, company has bought back 72 lakh shares, slightly lower than 72 lakh shares which is 6% of their enabling provisions having passed for 12 crores shares. So if you see the price at which it has been bought is about Rs 748 per share, so that process of share buyback will keep continuing because in the month of April alone the company has bought back close to about 30 lakh shares. With the same pace because already 3-3.5 months are relapsed since this buyback and the process has to get completed in next 8-9 months. So this process will act as a good support to the stock maybe at Rs 720-725. Infact inspite of such a poor Q4 numbers the share has not corrected well. I was expecting it to fall to about Rs 710-715 but it did not really fall. Rs 725 really acted as a strong support for the stock, so I don’t think that this litigations or the whatever new developments we have seen of the initiations of the arbitration process and all can really damage the stock further from hereon.”