Buy Call For Reliance Industries With Target Of Rs 2180: Nirmal Bang

RILNirmal Bang, one of the leading equity research-cum-broking house, is of the view that investors can buy Reliance Industries around Rs 1730-1680 with a target price of Rs 2180.

The company is presently trading around Rs 1920 level.

According to experts at Nirmal Bang, the stock may face some resistance between Rs 1975- Rs 2025 levels, but after that it can even have more upward movement.

Besides, the report has also suggested a support level of Rs 1880 for the scrip.

Today (June 23), the shares of the bank opened at Rs 1919.80 on the Bombay Stock Exchange (BSE). Current EPS & P/E ratio stood at 97.08 and 19.85 respectively. The share price has seen a 52-week high of Rs 2490 and a low of Rs 930 on BSE.

According to Nirmal Bang report, RIL has already corrected 18% from the high of 2359 made on 15th June after the High Court decision to the low of 1932 made today, which is a healthy correction. But the trend is weak and there is lot of selling pressure from the FIIs after the High Court verdict.

The stock has been weak continuously for the sixth day. In the very near term 1880 and 1820 is the level where it could find strong support. But in the longer run around 1730-1680 is an attractive level to buy from a long term perspective. For the immediate term resistance is placed at 1975-2025. If the stocks maintains above this level then we could witness decent amount of short covering and stock can touch 2180 shortly, the report added.

As per reports, ONGC & RIL are being believed as the `secret` bidders for UK-based Addax Petroleum. Addax, which could be sold for $8.26 billion, has fields in Iraqi Kurdistan and Nigeria.

Reliance Jewels, on June 20, announced that it plans to strengthen its presence by opening 20-25 new stores during the existing fiscal. The company also eyes to become a major player in the estimated Rs 40 billion Indian branded gems and jewellery market.

The company, a jewellery retail format of Reliance Retail, is likely to tap the markets in both major metros and smaller Tier II cities and has lined up a portfolio of over 20,000 designs in gold, diamond and bridal ranges.