Reliance Capital:415-430 May Be A Tough Zone To Sustain Further Rally

Trading Idea: Reliance Capital

CMP: 410

Either sell around 415/420-430 or on rise around 440/450-470;

TGT: 405*-392-375*-360-350*-330-315-300* (1-3/6M)

TSL> 480

Note: Consecutive closing (3 days) above 480 for any reason, RCL may further rally up to 495-515-530*-550-575* & 612-670-725 in the near to long term (alternative bullish case scenario).

For RCL (Consolidated Basis):

Q4FY16 TTM EPS: 43.57 (FY16/Actual)

Projected FWD EPS: 50.25-57.75-66.35 (FY:17-19/Estimated)

Average PE: 10

As par BG metrics & current market scenario:

Present median valuation of RCL may be around: 415 (FY:16/TTM)

Projected fair valuations might be around: 445-475-510 (FY:17-19/FWD)

RELCAPITAL	EPS(TTM)	BV(Act)	P/E(AVG)	Low	High	Median	200-DEMA	10-DEMA
Q4FY16/TTM	43.57	570.97	10	410.37	413.73	412.05	386.52	392.86
FY17/FWD	50.25	600.5	10	440.71	444.31	442.51	386.52	392.86
FY18/FWD	57.75	630.5	10	472.46	476.32	474.39	386.52	392.86
FY19/FWD	66.35	661.75	10	506.41	510.55	508.48	386.52	392.86

Analytical Charts: