May 7, 2010

RNRL vs Reliance? a 50% trade? - Update

well.. the Supreme Court judgement will be out today.. at 10.30am on the RNRL/RELIANCE gas dispute. I'm not so sure anymore about being short RNRL.. At the time of the earlier post, RNRL could've been shorted (and I shorted some) at 72-75 zone; and covered at 67.

Going into the event I'd like to maintain only long Reliance with no RNRL position. Depending on the outcome, we can do one of the three things
  1. If judegement totally in Mukesh's favour, short RNRL like hell for a target of 30 to 40
  2. If judegement totally in Anil's favour, you can buy RNRL for 80 but it'll probably trade to that point in seconds (no opportunity)
  3. If judegement aimed at a settlement between the two, just go long Reliance and possibly stay out of RNRL

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