Right Time To Take Entry In Reliance Capital
Reliance Capital is a constituent of Nifty MidCap 50. It is a company of Anil Ambani Group. This company's main focus is in Financial Services. We are expecting better growth of financial sector in near future. As we are bullish for market, this company can perform well in upcoming quarters because one product of this company RELIANCE MUTUTUAL FUND is amongst the top mutual funds in India with over six millions investors' folios.
Lets discuss Technical & fundamental of this scrip & also why I am bullish on this stock. First we start with Technical Analysis of this scrip.
If we check candle stick chart of Reliance Capital on daily time interval, we can find Channel brake out with impressive volume. Also some block deal of this scrip happened in NSE and BSE. I am bullish on this scrip not only basis of channel brake out but also so many other things support my view about Reliance Capital. Let’s discuss those things.
On monthly chart Reliance Captital had given SUPERTREND 14 , 2 positive crossover in month of August 2016. If we observe its monthly chart it had taken support of SUPERTREND 14,2 for 2 times in month of November & December, 2016. In these months market was under demonetisation effect. After that it had given good up side rally. Macd is in positive zone, ADX also shows positive signal on chart. If we check EMA 20 & 50, it had also given positive crossover in month of February, 2017 with impressive volume.
In 2008 stock had made high of 2924 after that it had given strong down trend, continuously made lower high and lower low. In March, 2009 made 274.10 Rs low. After that month scrip tried hard to start up trend with good volume but couldn’t cross 1068 and came down. After that this scrip played in range of 300-600 for few years.
On weekly chart since 3 weeks it has maintained its position above the pivot level. Market up rally also supported this scrip to start its upside journey. It is good volume scrip so safe for investors and traders. Major indicators like MACD, ADX, EMA 20 & 50 are also indicating positive on weekly chart.
Now I am giving you details of fundamental of this company. Market cap is 18,921.81 core , stock P/E is 16.94 & Book value is 603.97. Company is also expected good quarter & has been maintaining healthy dividend pay-out of 35.45%.
Reliance Capital has reported a 15% rise in consolidated net profit at 4,238 crore in the first quarter ended June 30, 2017. Its net profit stood at Rs 207 crore in the year-ago period. Total income stood at Rs 4,857 crore for the quarter ended in June 2017 as against Rs 3663 crore in the same quarter a year ago.
With help of technical and fundamental analysis view we can conclude it is good scrip for investment & it is right time to take entry in this scrip.
Its price might enter in to four digit figure soon.
- Anand Singh Gaur
- Sunil Kothari