Nirmal Bang, one of the leading equity research-cum-broking house, is of the view that investors can buy Reliance Industries Ltd with a short-term target.

According to experts at Nirmal Bang, the stock has been underperforming after the High court verdict and it has fallen by almost 26% from its top of 2359 on 15th June till today’s low of 1745.

Technically the stock price is near to the oversold region, the RSI on the daily chart is at 33. Strong support is placed at 1730-1680 regions and the 200-day moving average is at 1574.

On the higher side resistance is placed at 1880-1930. A fall of 3-6% should used as a buying opportunity keeping a stop-loss of 1600. And if 1600 is taken away
then next level is 1465.

Today (July 13), the shares of the company closed at Rs 1751 on BSE. Current EPS & P/E ratio stood at 97.08 and 17.92 respectively. The share price has seen a 52-week high of Rs 2490 and a low of Rs 934 on BSE.

According to reports, Indian govt is ready to purchase gas over the disputed amount of 40 mmscmd from RIL’s KG D6 field.

Confirming the declaration, union power minister, Sushil Kumar Shinde stated that the administration wanted to take under control over whatever is available over the undecided part of the gas, adding that the administration is not going to touch the undisputed part.

Mukesh Ambani-owned Reliance Industries and state-owned NTPC are engaged in a clash in the Bombay High Court over gas valuation to be sold to NTPC from the field.

According to a 2004 tender of NTPC, RIL had agreed to supply 12-million standard cubic metres of gas on a daily basis to NTPC for 17-years @ $2.34 mmbtu.

On July 03, RIL has shut down one of its crude distillation (CD) divisions at Jamnagar DTA refinery for an estimated duration of around 2-3 weeks for accomplishing routine maintenance work.

With other divisions in the refinery planned to be working as normal, product sales & dispatches will continue at the usual levels in the above period.