RIL can touch Rs 3000 by December, use dips to buy: Nilesh Jain, Centrum Broking

Domestic markets BSE Sensex and Nifty 50 were trading weak on Monday, mirroring the global markets. While the BSE Sensex was hovering around 58,050, the Nifty 50 index gave up 17,350 in early trade. In fact all sectoral indices barring the metals and media were in the red.

“Markets seem to be consolidating amid cautious trade globally. The immediate hurdle for the Nifty is placed 17,400 while the support is at 17,200 so we may see the Nifty consolidating within this broader range. The Bank Nifty continues to underperform”, Nilesh Jain, Technical Research Analyst, Centrum said.

On the broader markets, he believes that the space is likely to outperform the frontline indices over the next 3-4 months as they seem to be seeing a pullback after consolidation now.

On the stocks in the news, he believes Reliance Industries which is seeing a downtick at the moment, can be seen as a good point for long-term investors as there are no signs of a bigger correction.

“Expect RIL to touch Rs 2600-2800 levels soon or even Rs 3000 by December. On Zomato, he believes post the news flow one may keep Rs 125 as the stop loss and looking at the current momentum, it might touch the levels of Rs 150”, he added.

Stock Recommendations

Shipping Corporation of India | Buy | Target: 120 | Stop Loss: 109

Coal India | Buy | Target: 156 | Stop Loss: 147