Reliance Communications Ltd: Buy

CMP: Rs.54.20

Reliance Jio has now empowered the group employees, who had got the trial SIM earlier, to bring 10 more people to the 4G network through a referral invite system. 

The ET reported yesterday, that

This is the first step of Reliance Jio's soft launch and it could be the turning point for Reliance Communications too.

Moreover, RTN Asia reported that Reliance Communications has upgraded its 4G network in 9 circles, with a data offer of 10 GB. This is likely to drive up data traffic for Reliance Communications.

Meanwhile, RNT Asia has also come up with an exclusive news on the topic today: Reliance Jio, the 4G operator from the RIL stable, has started expanding its trial services to the public, but through an invite-only system.

With this, you can go and get a trial SIM and a LYF phone, but you need to get the special invite — a bit like buying a OnePlus phone. To buy a OnePlus phone, you have to register for the sale and the company then hands out invites to those who have registered or who have already bought their phone or won contests.

Reliance Communications’ 4G upgrade has so far been rolled out in nine circles, and will reach the other states by around the 10th or 15th of this month.

Therefore, buy or average the shares of Reliance Communications at around the support of Rs.54.20-54.30, for short term Target's of Rs.59-60.