Reliance Industries received permission to fix price of the gas. Momentum Buy

Stocks

oi-Shoaib MD

By Shoaib Md

Published: Thursday, May 26, 2011, 15:39 [IST]

For the momentum investors, it would be interesting to follow the stock of RIL (Reliance Industries). Except for few selected priority sectors, the government of India has decided to allow RIL the freedom to fix the price of the gas. This will have the additional benefit of rise in revenue of government's share from the KG-D6 field as a the output increases.

Priority sector includes fertilizers, power, cooking gas and LPG where as non-core sectors will include steel, petrochem, refineries and captive power. This news has brought in some momentum investors, as the RIL stock already increased by 2.37% so far.

The stock has been under a bearish mode over the past one month. But with this thrust, if the momentum is maintained the stock can go up to Rs 940 over the next three or four trading sessions.

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