Sell RCom With Stoploss Of Rs 298: Hitendra Vasudeo

Sell RCom With Stoploss Of Rs 298: Hitendra VasudeoStock market analyst Hitendra Vasudeo of stockmechanics.com has maintained ‘Sell’ rating on Reliance Communications (RCom) stock to achieve a target between Rs 256.10-Rs 222 today.

The investors are advised to sell the stock in order to avoid loss, as there are full chances of a downward trend in this stock.

If the stock fell below Rs 216, it may see more weakness.

According to Karvy, investors can sell the stock around Rs 276.90 - Rs 290.20 with a strict stop loss of Rs 298.

After selling the stock in today’s session, the interested investors can enter the stock again, but only on declines.

The shares of the company, on Monday (July 06) closed at Rs 269.40, down Rs 23, on the Bombay Stock Exchange (BSE). The total volume of the shares traded stood at 3,782,159. The scrip hit an intraday high of Rs 297.70 and an intraday low of Rs 263.60.

Current EPS & P/E ratio stood at 11.40 & 23.68 respectively. The share price has seen a 52-week high of Rs 541.40 and a low of Rs 131.35 on BSE.

Reliance Communications, on July 03, said that its stockholders have given their nod for raising funds from institutional investors via sale of shares.

The company said that its shareholders have passed the special resolution by way of postal ballot, clearing the company’s directors to issue equity related securities to QIIs, by requisite majority.

On July 03, Alcatel-Lucent Managed Solutions (ALMS), which is a JV between RCom and US-based telecom equipment maker Alcatel-Lucent could not meet up its target revenue for the first year of operation.

RCom possesses a 33% equity stake in ALMS.

ALMS had won a five-year deal initially worth $500 million, to manage RCom`s network during the last year.