ICICIDirect is positive on Reliance and Bharat Dynamics. Dharmesh Shah explains why
Dharmesh Shah, Head-Technical, ICICI Direct, says “Reliance is a pure proxy play on oil and gas and telecom. We believe this stock, after witnessing a sharp move from Rs 2,800 to Rs 3,000, has been consolidating in a strong bull candle for a long time. Once things get settled in the market, we should see a primary uptrend for Reliance, where Reliance can be considered for a target of around Rs 3,050, keeping a stop loss of Rs 2,790. Bharat Dynamics has been consolidating for the last five weeks. We remain positive on Reliance and BDL in the near term.”
How did the setup look? Did it look like there was a breakdown in the first place or were you already getting a sense that today's dip will be bought? What are you recommending your clients today after looking at the price action that has happened in the first half of the session today?
Dharmesh Shah: In the morning, it was a very panic-type situation. The Singapore Nifty opened a gap down of about 300-400 points. Historically, when such events come, once the anxiety settles, the market generally has a tendency to move up. We believe once this anxiety gets over, maybe in a week, things should get settled and 21,700, 21,600, like in last month's low should hold.
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Dharmesh Shah: As far
