Reliance Comm options signal upside in July

Reuters Market Eye - Expectations of further gains in Reliance Communications shares are gathering pace as 3 million in outstanding share positions in July call options were added on Monday at between 140-145 rupees.

Reliance Comm shares were down 2.1 percent at 129.80 rupees at 0842 GMT. Shares had risen about 12 percent 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 Nifty in the same period.

(Reporting by Abhishek Vishnoi)