BOOK PROFIT IN RELIANCE COMMUNICATIONS

In five trading section stock moved from 138 to 178 levels giving handsome profit of Rs.40 to traders.We all know its a news based movement,companies which are interested in RCOM has already reduced from three to two in these days.MTN already issued statement regarding this.So now Etisalat and US based AT& T are there.

But stake sale of RCOM will not be so easy process,with  EUROPEAN CRISIS around a US based company come to india,with a higher premium for 26% stake is bit different,or else they need atleast a majority stake,that ANIL will not allow.Etisalat is already in JV with DBTELECOM and selling there investment at this time will be a loss to company,So if they do so ,then RCOM has to compensate them in premium of 26% stake.So if global market stay in current condition and go worse there is a high probability of any of these two companies stop talks atleast for month about stake in RCOM as issue a press release.

SO Reduce RCOM for target of 155-158