Sell Reliance Petro
Stock market analysts have maintained ‘Sell’ rating on Reliance Petroleum Limited (RPL) stock to achieve a target between Rs 155-157 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 160, it may see more weakness.
According to analysts, investors can sell the stock below Rs 163.4 with a strict stop loss of Rs 166.3.
After selling the stock in today’s session, the interested investors can enter the stock again, but only on declines.
Reliance Petroleum (RPL) on July 22 said that it would commission its refinery ahead of December. The company said that nearly 94% of the project has been completed.
The status of the project as on June 30 is in accordance with the major milestones stated in the prospectus dated April 28, 2006.
Till June 30, the company has invested Rs 255.15 billion in the refinery. This is higher than the projected investment of Rs 241.25 billion as the company made an advance payment to the contractors in order to guarantee prompt implementation of the project.
The variation is mainly due to payments in advance under project contracts for continued efficient and speedy implementation of the project, Reliance Petroleum said.
In June, Reliance Petroleum (RPL) has also announced to set up a polypropylene unit in Kuwait.
The company already has operations in the Gulf states to market polypropylene.
Moreover, it is also making discussions with a couple of players to join in the polypropylene project. It is also in the process of recruiting manpower for the project.
The company had raised Rs 81bn through an Initial Public Offering (IPO) in mid-2006. As on June 30, the company has utilised Rs255.15bn for the project against a projected utilization of Rs 241.25bn.