Reliance Communications: The Future Telecom Godzilla
CMP: Rs.38.25
Meanwhile, there are recent media reports that, Anil Ambani-promoted Reliance Communications Ltd (RCom) has obtained approval from capital markets regulator Securities and Exchange Board of India (Sebi) to spin-off and merge its wireless division with Aircel Ltd and Dishnet Wireless Ltd, as per stock market disclosure.
RCom already has enough of the luctrative 800 MHz spectrum necessary for 4G transmission, and which it shares with RJio. Also, as RJio expands it will benefit RCom, as the former is using latter's network (infrastructure), at a price.
Now if we look at the chart of RCom, we can see the formation of a Dragonfly Doji like pattern on the uptrend (though, not exactly).
It will pertinent to mention here that Thomas N. Bulkowski in his book, Encyclopedia of Candlestick Charts wrote:
"The dragonfly doji is an interesting name for a candle that is supposed to act as a bullish reversal. It is a reversal candle, but only half the time. Random, in other words. If you see a dragonfly doji in the bush, do not be frightened. The 10-day performance after the breakout ranks it 98th out of 103 candles, where 1 is best. In other words, ignore it. Its bite is usually not fatal. Usually.
The dragonfly doji is an interesting name for a candle that is supposed to act as a bullish reversal. It is a reversal candle, but only half the time. Random, in other words. If you see a dragonfly doji in the bush, do not be frightened. The 10-day performance after the breakout ranks it 98th out of 103 candles, where 1 is best. In other words, ignore it. Its bite is usually not fatal. Usually".
Therefore, I feel the traders should continue to accumulate RCom, for immediate targets of Rs.54 - 55 - 57 - 60, from where it fell -- the good days are to return for the shareholders of RCom.
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