Reliance Communication stock is on the edge. A small push from current levels and a dramatic sell off can happen.
Here's why: Reliance Comm stock is at important Support Level
Reliance Communication Stock weekly chart
As you can see in the chart above: Reliance Communications stock is right at 111-112: level from where stock has always bounced in last 12 months. Will bulls again work overtime and save the stock? We will wait and see. Any breakdown here on weekly basis will only attract more selling and one should not rule out dramatic selling post breakdown.
There is another way of looking also at the same stock. Some may see the current sell off as buying opportunity as stock is right at support. Remember - Infosys made a great trading bottom on panic on May 30. The stock has rallied 27% from that low of May 30. I was wrong at that great turning point. So, you never know.
My only worry: Why Rcom stock is selling off at a time when stocks of the same sector Idea and Bharti are doing great. Kuch to Baat Hai.
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers