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Mumbai: IndiaInfoline (IIFL) is bullish on Reliance Capital and has recommended a buy rating on the stock with a target of Rs. 870. According to IIFL, despite extreme volatility in the broader market, Reliance Capital managed to close above its 20 daily moving average (DMA) on Friday. The brokerage says that on the upper side, the stock could face stiff resistance around the levels of Rs. 865-870.


Reliance Capital is a financial services company that has interests in asset management and mutual funds, life and general insurance, private equity investments, stock broking and depository services, consumer finance, asset reconstruction, institutional broking and distribution of financial products. The company operates in five segments: finance and investment, asset management, general insurance, consumer finance and others. Reliance Capital is a part of the Reliance Anil Dhirubhai Ambani Group.

According to IIFL, any sort of short-covering above the levels of Rs. 870, could take the stock up to the levels of Rs. 900 in the medium term. Based on the above analysis, we recommend traders to buy the stock between the levels of Rs. 828-836 for an initial target of Rs. 870, says IIFL. With the recommended target price, if the stock is bought at Monday's closing price of Rs. 832.60, the percentage of gain would be 4.49 percent.