Reliance has broken the key levels of 982 and thus it can fall to the levels of 950 where it will again find the support. It is correctly stated that high expectations can also play havoc with the stock like it happens with sports players.

The point to note is that Reliance has a weightage of 11% in the index has not been able to make any move in the market and is like a stone in the neck of a person who is drowning. Reliance is falling and along with it also goes the Nifty to 5200 level. It had tried to undertake bold moves like buying a stake in East India Hotels and a Bharti-Axa joint venture have failed to convince the markets.

Thus it is considered that market do not favour diversification but it favours consolidation and it will be in the interest of Reliance to consolidate its energy business and go for some global acquisition at cheap valuation which can give fillip to its revenues as gas output from KG D6 basin is also not upto the projections. Moreover it should remain ethical and should not get into controversies in recent times as in recent times it has been blamed for inflating bills on investments made in the D6 block. Be clean and you will rise high and shine.
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