If the news is true, can we expect an upper market-level circuit tomorrow?

News of their differences being resolved is flashing across all news channels also.

I think circuit limits are not applicable to RNRL and Peliance Power, since they are in F&O segment. But those who could not get out of RNRL on the Supreme Court judgement day, would surely get another chance tomorrow .

Agreed, but there are breakers for the indices. We last had the pleasure of trading being halted for the day last May after the general elections. That's why I mentioned a market-level circuit rather than a stock-specific circuit.

The news has got a rather cautious and subdued welcome. "Experts" feel more positive about RIL than about Anil Ambani's stocks and no one has mentioned the possibility of a market circuit-breaker being hit.

I feel it is not a settlement, but actually a surrender by the ADAG group.

Reliance Power needs the gas at any cost. Without gas, its gas-powered projects will be dead.

By canceling the non-compete agreements, ADAG group has now permitted Reliance Industries to enter its areas of business.

Most of RIL's businesses are capital intensive - oil and gas exploration, polymers, refining etc.

It is unlikely that ADAG group will try and enter these areas.

However, there is a strong possibility that RIL may enter areas in which ADAG group is already present - especially financial services.

Stocks of both Reliance groups will be up sharply tomorrow, but I don't think we will get anywhere near the upper circuit level.

My guess is that Nifty will close the day 5%-6% above Friday's close.

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And my own stock portfolio won't gain one bit since I don't hold any Ambani stock. Of course, my mutual fund holdings will benefit to some extent.

Is it time to buy at any cost RNRL or RIL tomorrow morning only to sell in the evening?

I have not played with any reliance group companies until now. Is it time to break the record?

If markets up tomorrow 5 to 6 percent that may help to recover my loss in Praj tomorrow itself which has a gigantic portion of my portfolio.

On such days, most of the gain is made in the first few moments of trading. As Alchemist pointed out recently, we, with our slower connections, will get in after most of the fun is over!

I still haven't decided my strategy for tomorrow.

I may sell a few shares (delivery) or may even short for intra-day trading.

I will take my final decision after looking at SGX Nifty and other Asian markets.

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SGX Nifty is still trading below 5000.

It seems the market isn't going anywhere this morning.

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So are we backing off to take entry in Reliance group today?

I am not going to buy any Reliance stock today.

I don't think anything has changed fundamentally for these companies.

At most, one can say that this development is a positive for Reliance Power, Reliance Infrastructure and RNRL.

Even if the Reliance stocks move up in the short-term, in the medium-term, the stocks will follow the market, which in turn will follow the global markets.

(We had hit an upper-circuit in May 2009, but the indices gave up most of those gains by July 2009. The markets did continue to rally after July, not because of the election results, but because the world markets were rallying too).

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Well! If it were not for the Ambani stocks, the markets would have ended up even deeper in the red. So much for thoughts of an upper circuit !

I am disappointed.

Clearly, the market has a lot of weakness.

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Here's a take on the non-compete agreements being scrapped:

Reliance truce means little in real terms.

The writer claims Mukesh is only after power..

Quoting from the above article:

Reliance has entered into telecom sector (broadband).
Reliance has entered into financial sector (by buying out Bharti's stake in Bharti-AXA joint venture).
Reliance has shelved plans to enter power sector.

Moral of the story:

No analyst should be overconfident about his ability to predict the future. .

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