Reliance Petroleum Intraday Buy Call
Karvy Stock Broking Limited has maintained ‘buy’ rating on Reliance Petroleum Ltd (RPL) stock with an intraday target of Rs 112.
According to Karvy, interested traders can purchase the stock between Rs 102-103 with a strict stop loss of Rs 98.50. If the stock market remains on positive track, the stock pricing becomes more attractive, and reach above Rs 114.
Shares of the company, on Thursday (April 02), closed at Rs 103.60 on the Bombay Stock Exchange (BSE). The share price has seen a 52-week high of Rs 206.45 and a low of Rs 68.10 on BSE.
The stock has great potential to rise on the back of healthy growth plans and well-built operating capabilities.
The stock holders of Mukesh Ambani-led Reliance Industries (RIL) met on April 04 in an extraordinary general meeting to vote on the amalgamation of its arm Reliance Petroleum with the company.
The voting result will be announced today.
The equity shareholders and secured and unsecured creditors of RIL participated in the conference and voted on the merger plan.
Justice B N Srikrishna (Retd) was nominated Chairman for the meeting.
On April 9, equity shareholders, secured and unsecured creditors of Reliance Petroleum would assemble at an extra-ordinary general meet, which will take place at Jamnagar.
The directors of both companies sanctioned the all-share merger agreement that implicates stockholders getting 1 RIL share for every 16 shares held in RPL.
Following the share-swapping, RIL would have 3.7- million stockholders and the promoters holdings, which consists of its Chairman Mukesh Ambani, will come down by 2 to 47%.
RIL is holding 75.38% in RPL that would be canceled on amalgamation.
This is the fourth instance where RIL has absorbed one of its arms, the earlier one being 7 years ago when Reliance Petroleum was merged with it.
The move would catapult RIL to top 20 oil refiners in the world.
Other stocks from the same sector that looks good for short-term as well as long-term trading includes Essar Oil and ONGC.