The spate of bad news continue unabated, especially for Reliance, with the government imposing a further fine of $ 579 mn or Rs. 3,474 crores for failing to meet the gas production target for the year 2013-14 from its Andhra offshore fields. Thus the total penalty for reliance for the period beginning April 1, 2010 would be $2.37 bn or Rs. 14,200 crores. Though the company is likely to contest the penalty, the news has dampened the investor sentiments in the stock.
The technical charts of Reliance and ONGC have shown identical trend pattern in all time frames i.e. hourly-daily- weekly and the weakness is likely to continue for sometime which may keep Nifty subdued in near term.
