Sunday, August 25, 2013

Buy L&T on dip, Reliance may fall further: Anu Jain

Anu Jain, Director - Equities at IIFL Private Wealth Management told CNBC-TV18, " Reliance Industries  to be the one which can fall more if the markets were to give up from here. It has held on to those Rs 840-845 levels and broken down that, closed at Rs 825 on Friday. Now that Rs 795-800 levels is a support zone for it."

"If the markets were to stay weak and it were to test those levels and break that then you would have a fall which could take it right down to about the previous lows and may be slightly lower. Till now it was an outperformer," she said.

Jain further said, "The strong support is at Rs 795. It is definitely possible for that Rs 30 which is about 3.5 percent from here to go off on a day like this or may be one more day. It is Rs 795, which is crucial as to how it holds up, the next level would be Rs 770."

"On the other hand at about Rs 750, Larsen and Toubro  (L&T) is looking extremely oversold. I think you can get it down up to Rs 730, but those would be levels to accumulate. So given further short call even if the market was to go weak on L&T seems to be unlikely. The lower levels will be levels to accumulate L&T even though the whole sector is negative. So Reliance may give up, L&T should be a buying opportunity on lower levels," she said.

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