Reliance Communication
Reliance Communication is now a discarded stock, but its move suggests that some days later, if market gets better, it will be the darling of investors and traders. The crucial test for Rcom is the price level of Rs 87-88. However, the move of 2nd Nov says more with some bullishness in both price and delivery volumn action. The strong action came after a report that Mukesh Ambani to use Rcom infrastructure for his telecom biz.
In case Nifty manage to get the level of 5800 by Dec'11, it will not be surprised to see the stock at Rs 120 level. The higher level can be expected when debt restructing and tower business deal is on progress by Rcom Management.
Since it is quite volatile in nature, I would suggest to keep a stop loss of Rs 70.