InvestorQ : What is your trading view for 25 June? Why did Reliance close lower on Thursday despite the AGM?
vidhya Laxmi made post

What is your trading view for 25 June? Why did Reliance close lower on Thursday despite the AGM?

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diksha shah answered.
6 months ago
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First and foremost, the F&O expiry was smooth on Thursday with Nifty gaining over 100 points. There was some short covering in technology stocks while longs were not rolled over even in arbitrage positions in metals and in many Adani stocks. However, RIL lost 2.5% in the day despite the relatively positive announcements in the AGM of RIL.

The Reliance AGM announcements were largely in line with expectations and there were not major positive and bold surprises. The green energy shift was perhaps a little more aggressive than originally imagined. Markets don’t see any short term impact of the Jio Phone and the 5G launch. The benefits may be more for the medium term on RIL AGM.

FPI action was negative on Thursday with net selling of Rs.2,891 crore but that is largely due to the F&O expiry which normally results in FPIs selling off their cash positions they don’t intend to roll over. Domestic institutions bought equities worth Rs.1,139 crore. There were also a lot of block deals on Thursday, so you may have to take with a pinch of sale.

Global cues were extremely positive as we go into trade on Friday. The Dow was up 100 bps, NASDAQ up 70 bps and European markets also closing strong across the FTSE, DAX and CAC. The Indian SGX Nifty is flat to positive in early trades but I think Reliance Industries could hold the key and perhaps even determine the direction of the market.

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