Mudraa.com
Search Mudraa.com

Home


Buy & Sell Used Cars at CarBHP.com


Topic: Reliance Natural Resources

View Profile

RNRL COULD EMERGE PROSPEROUS--DR SAJAN

From : Sajan Mohammad at 11:26 AM - Feb 13, 2010 ( )
Total Views:


Share it on Facebook

This is the second part of my letter
The total number of shares of Rnrl is 163 crores.The floating capital of Rnrl is just 48.8 crore shares.This is the total number of shares with the public.Rnrl is trading in a range of just 10-13 rupees for the past 3.5 months.From the time of 28th October 2009 till 11th February 2010 rnrl has just traded in the range of Rs 62-Rs 75.Rnrl has been in the top trades during most of this period. This shows that heavy accumulation was going on during this period.Hence we could expect an upside breakout very soon.moreover technically there is a wedge formation in the chart of rnrl which confirms our suspicion of an upside breakout!!!!
The volatility of Rnrl was maximum during the period from January 01 2009 to june 30 2009.Volatility was 7.38.compare this with the low volatility of rnrl now.
The volume of RNRL is on the rise for quite sometime now.The open interest is also quite high.But the price is almost low to stagnant.What does this indicate?A heavy shortbuildup has taken place in rnrl.There is a chance for HEAVY SHORT COVERING sooner than later.
Calls have been written only upto 90.When short covering takes place these professional  call writers can cover their shorts and it can take the stock further.
The spot price of Rnrl is just Rs 65.There should have been an equal number of trades for both 55 strike put as well as 75 call.But that is not the case.Only 2 lots were traded in the 55 put on 11th February 2010 whereas 133 lots were traded on the 75 calls!!!!
RIL had earlier agreed to sell gas at $2.34 mBtu to NTPC before the price fixation by the govt had come.This happened way back in 2004.If RIL had continued to sell gas to NTPC at the earlier rate for 17 years,NTPC would have saved Rs 30000 crores. RIL's loss would have been just Rs 1500 crores according to the PSU.
In short the stock price of RNRL is bound to go up in the very short term irrespective of the verdict.If the verdict comes in favour of RNRL we can assume a minimum target of Rs100-110




Reply on this Message (Reply in Rich Text)




In Reply to above Message (1 to 2 out of 2) -- Latest Replies are put on Top



Login to participate in discussion.




Recently Discussed Posts of Sajan Mohammad

Technical Calls >> SELL NIFTY FUTURE (3)

Technical Calls >> BUY NIFTY FUTURE (4)

Technical Calls >> 5200 call (1)

Technical Calls >> BUY 5200 PUT (11)

Technical Calls >> BUY NIFTY FUTURES (5)






Disclaimer: The messages and ideas posted on this website are user's own views. Mudraa.com does not own any responsiblity for the information provided by the users.Data delayed 15 to 20 minutes unless otherwise indicated.