Reliance Com options signal upside in July

Expectations of further gains in Reliance Communications Ltd shares are gathering pace as three million in outstanding share positions in July call options were added on Monday at between Rs 140-145. Reliance Com shares were down 1.2 per cent to close at Rs 130.95 on Tuesday. Shares had risen about 12 per cent to their highest level in 2-1/2 years on Monday after the mobile carrier said it had repaid foreign currency loans worth about $1.2 billion.

"Looking at the change in outstanding positions one should expect more upside from Reliance Communications in July," said Amit Gupta, head of derivatives research at ICICI Securities. Falling debt levels and two recent separate deals to share mobile towers and fibre optic with Reliance Industries Ltd's telecom unit have boosted Reliance Communications shares.

Reliance Comm's shares have risen 79.4 percent in 2013 as of Monday's close compared with 0.1 percent fall in the NSE stock index in the same period.