I have 500 shares of Reliance Communications Ltd averaged out to Rs400 a share. I recently heard that the optical cable business may be moved to Reliance Infratel Ltd. What will be the effect of the move and should I stay invested or move the money to other stocks?
Dr Mohan Raj
Corporate restructuring is a normal phenomenon, but mostly it is done keeping in mind shareholders’ interests, so I do not think it would affect you in a significant way. If there is any significant change in the worth of the company, then you as a shareholder would get some benefit out of such restructuring. As far as the investment in this stock is concerned, if you are a long-term investor, then you may stay invested. However, in the long-term, the stock may peak out. In the telecom sphere, Idea Cellular Ltd is a good option and this stock has been recently added in the Morgan Stanley Capital International (MSCI) India index.
What’s your opinion about Bartronics India Ltd, any future in staying invested in this company ?
You may stay invested in this counter with a target of Rs135 and a stop-loss at Rs52. However, before executing the target of stop-loss, please consider the then prevailing market conditions and technical parameters of the stock.
Answers are based on a technical analysis of the markets and individual stocks. The views expressed on this page are not the newspaper’s opinion and are provided for information purposes by Vipul Verma. Readers are requested to do their own research before participating in the stock markets. Neither the paper nor the information provider will be responsible for any outcome based on information provided here.