Reliance Communications - BUY

Broking firm PINC Money has recommended Reliance Communications as stock of the week with target price of Rs 215 - 220 in 2-3 months as against current market price (CMP) of Rs 182.



Rationale

Moving averages crossover: ``The combination of medium and long term moving averages used to track the trend in Reliance Communications (Q,N,C,F)* are about to make a bullish cross over. This suggests that the major trend in the stock is bullish.``

Momentum gains upward bias: ``The medium / long term momentum (KST) is moving up. It is also above its trigger line and the indicator itself has entered its positive zone. This confirms a positive trend. The uptrend is steady and can be sustainable.``

Recommendation: ``The momentum in the trend of Reliance Communications is turning bullish. Technicals are suggesting that the uptrend that can sustain in time is likely to open. We expect the price to rise to Rs 215 - 220 in the next 2 - 3 months.``