Karvy Stock Broking Limited has maintained ‘Sell’ rating on Reliance Communications (RCom) stock to achieve a target between Rs 530-533 today.

The investors are advised to sell the stock in order to avoid loss, as there are full chances of a downward trend in this stock.

If the stock fell below Rs 545, it may see more weakness.

According to Karvy, investors can sell the stock below Rs 550 with a strict stop loss of Rs 562.

After selling the stock in today’s session, the interested investors can enter the stock again, but only on declines.

Reliance Communications is likely to start due diligence of South African telecom giant MTN.

The company is likely to get hold of MTN books in next 48 hours as a part of due diligence process. Any decision on the structure of the new entity in the post-merger scenario will be taken only after completion of the due diligence.

There is exclusivity of 45 days by when the two companies have to decide on the potential merger. On May 26, RCom announced entering into exclusive negotiations with MTN to discuss potential combination of their businesses.

Reliance Infratel, the telecom infrastructure division of Reliance Communications, is diluting 5% stake to a clutch of American and European investors in a pre-IPO placement a deal that values the company at about Rs 500 billion.

Reliance Communications (RCom), on May 12, has signed up a joint venture (JV) contract with telecom infrastructure company Alcatel-Lucent to offer up Managed Network Services (MNS) to telecom service providers in the country.

Moreover, the company has obtained a USD 750-million loan from China Development Bank in order to fund its nationwide GSM foray.