RCOM

RCOM

Reliance Communications Limited:
As seen above, the price is moving in the pattern of 5 waves from past one year, and the duration keeps on decreasing with time and the volumes gain with time. Now, the price at latest finished the 5 wave pattern in the bullish trend, so expecting 5 bearish waves. Also the momentum indicators are about to break into bearish signals soon. A short term advise here is to go short two lots of May future derivative of the stock at 100 and wait for the stock to reach 85 soon. (i.e: 15x2(4000) = Rs. 1,20,000). [Sl: 110]

RCOM

Reliance Communications Limited:
As we can see the formation of bearish Elliott waves, now the price will go for a correction. So this time, the retracement is expected up to the 50% Fibonacci level - 75. Therefore good decision now is to go for buying 2 lots of Apr future derivative of the stock at around 62 and wait for squaring them at 75. (i.e: 13x2(4000)= Rs. 1,04,000). [Sl: 57]

RCOM

Reliance Communications Limited:
After the major correction wave A, wave B is expected up to 32% re-tracement up to Rs. 75 in near short term. Also the stock faces a major support at Rs.65. Should go for long with two lots of February future derivatives of the stock and wait to square the positions around Rs. 75.(i.e: 10x2(4000)= Rs. 80000). [SL: 60]

RCOM

Reliance Communications Limited:
Following the Elliott wave principles, the stock has climbed up to Rs. 90 within a period of 3 months, now, it is expected to make a correction up to Rs. 75 (38% retracement) according to the Fibonacci retracement levels. Increased volumes confirming the profit booking situation to trigger the price fall soon. My advise is to go short 2 lots of Feb 2013 future derivative at Rs. 88 and wait till expiry ( short term) to square the position at Rs. 75. (i.e: 13x2(4000)=Rs. 1,04,000) [Advised SL: 92]