Almost 10 days are still remaining, but strong buying in markets are continuously lifting our Nifty and Sensex to new record highs. On Friday, Nifty makes lifetime high of 10900 which is only 100 points away from the major level of 11000. Banking sector was one of the top contributing sectors this week especially HDFC and HDFC Bank.
After so much volatility in last two-three days, I feel market should now consolidate to become ready for after Budget buying. However, its true that any two-three more good news may now lift market towards 11200 before 1 February. But overall, consolidation is required at present levels to easily forcast future Nifty targets.
A great Quarter for Reliance Industries especially for Jio
On Friday evening, One of the major, Reliance announced its quarterly results. Revenue was up at around Rs 1lakh crore. Profit also rose sharply for quarter ended December to Rs 9,455 crore. Major Profit Generating business of Reliance i.e Petrochemical also saw a good growth in Q3. However, the great attraction for the ended December quarter is of Jio Financial numbers. And yes, it posted a Rs 500 crore profit against tight loss of Rs 270 crore earlier. This magic or you can say turnaround came true only because of reduction of IUC charges by Telecom authority in October month. Whereas in Q2, Jio paid Rs 2000 crore as IUC charge, in Q3, this amount came down to just Rs 1000 crore.
Although, I think this quarter was really awesome for the Reliance and Mr. Mukesh Ambani. Despite of volatility in crude oil prices, Reliance recorded a good quarter. However, Stock of Reliance has not seen any action in accordance to such result on Friday, means we would now see action in Reliance stock on Monday.
Stock had previously made a high of Rs 959. And it is currently quoting around Rs 931. So, it is very clear that we could see a new 52 week high in Reliance stock on Monday. Meanwhile, I think the Q3 results now have capability to extend the potential upside in stock. Therefore, I think for short-term, without any doubt, stock has now potential to see level of Rs 1060 in next few weeks.
Have any question related to this post? Feel free to ask through comment box given below.