InvestorQ : Should I buy a Reliance?
Purvesh made post

Should I buy a Reliance?

Tisha Malhotra answered.
1 year ago

In the last few months, the stock has been quite volatile after it touched a peak of around Rs.2350. That is because most of the immediate triggers like the reduction of net debt to zero and the stake sale in Jio and Reliance Retail are done, as is the rights issue. Hence there are really no short-term triggers that can drive the stock higher.

However, there are some positives in the recent past. For example, Jio ended up being the highest spectrum bidder in the recently concluded auctions and accounted for nearly 75% of all the spectrum that was actually sold. That should be a further boost to the future trajectory of Reliance Jio. Also, their new plan to tap the bottom of the pyramid for telecom and digital services is also aa positive.

If you are looking at a stock that can give around 12-14% returns on an annualised basis over the longer term, RIL is still the stock to go to. However, if you are looking for a short-term trading then the price of entry would be more critical. Ideally, use dips to around the 1900 levels on Reliance Industries as a good level to enter the stock.