Technical analyst Abhishek Jain of Stocksidea.com has suggested investors to buy Reliance Communications Ltd for short term.

Mr. Jain expects the stock to hit a target of Rs 365.

According to Mr. Jain, the stock may face some resistance around Rs 342 levels, but after that it can even have more upward movement.

The scrip has very strong support at Rs 244.

Shares of the bank, on Friday (July 31), closed at Rs 275.65 on the Bombay Stock Exchange (BSE). The total volume of shares traded was 2,110,062 at the BSE. The stock hit an intraday high of Rs 288.95 and a low of Rs 272.50on BSE.

The share price has seen a 52-week high of Rs 508.70 and a low of Rs 131.35 on BSE. Current EPS and P/E of the stock stood at 11.40 & 24.18 respectively.

Mr. Abhishek stated that the stock is looking strong technically. Interested investors can buy the stock for short term.

Reliance Communications, part of Anil Dhirubhai Ambani Group, declared the results for the three month period ended June 30, 2009.

The company posted a growth of 8.3% in its net profit at Rs 16,370 million as compared to a net profit of Rs 15,120 million for the same quarter of the last year.

For the period under review, the company’s total revenues stood at Rs 61,450 million, a fall of 15.50% over the prior year period.

While commenting on the quarterly results, Anil Ambani, Chairman, RCom stated that the successful commercial launch of countrywide GSM services and other new plans across all the business helped the company to record good growth during the quarter.

RCom, on July 22, entered into a deal with Etisalat DB for offering up infrastructure solutions comprising tower and transmissions.

The back-to-back contract, which is aimed at accelerating Etisalat DB`s approaching launch of telecommunication services in the country, is for more than Rs 100 billion for a period of 10 years.

RCom announced that Etisalat DB and its division would outsource their telecom infrastructure to Reliance Infratel and Reliance communications.