Technically, RELCAPITAL (CMP:447), has immediate support of around 439 & below that 427 zone. On further downside, 421-407 area may provide positional support (low probability as of now).
On the upside, it could target 488-502 area in the short term and its mid-term target may be 550-600 zone. Its 12M target may be around 660-800 zone.
Insurance bill could be passed by the RS today as par reports yesterday after market hours. It has already been passed by the Parliament and also cleared the hurdle of Parliamentary Standing Committee. Congress has also reportedly no objection in it passing through RS as it was them (UPA), who initially introduces the bill. As a "give & take policy", united opposition in RS may also have no objection to pass it apart from left (who are ideologically opposed to the bill).
Reliance Capital is one of the scrip, where lots of small investor are still trapped after 2008 peak & crash of around 3000/-.
Nippon Life Insurance has already stake of around 35% & will get it to 49% in the near future in Reliance Capital. RELCAPITAL also fast deleveraging by selling its stake in Maxwell Industries.
Going forward, there may be vast untapped opportunity of all types basic insurance in "shinning India" as par global standards and it may also look opportunity for a full banking license either organically or inorganically. Re-rating of the stock may be on the card.
As par BG model of techno/funda model, median valuation of RELCAPITAL is around 673 (consolidated data) and 482 (standalone data) under the current market conditions.
| SCRIP | EPS(TTM) | BV(Act) | P/E(INDS) | LONG TERM | SHORT TERM | MEDIAN VALUE | 200-DEMA | 10-DEMA |
| RELCAPITAL | 34.98 | 503.46 | 27.96 | 684.05 | 662.86 | 673.46 | 478.43 | 449.25 |
| RELCAPITAL | 17.92 | 472.71 | 27.96 | 489.61 | 474.44 | 482.02 | 478.43 | 449.25 |
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