IndiaTechnical Analysis

Zee Entertainment Technical Analysis

Zeel closed at Rs.328.30, up by 2.34% as on 10th January, 2022

On a daily time frame, when support and resistance were plotted, we can observe that the stock has a support at Rs.324.60, which has also been the support zone for the stock in the past years (June 2019 to Feb 2020). It can also be outstated that the stock was in a consolidated zone in the same period. Fun thing to watch is whether it will continue the same trend or whether we can see any movement. The next immediate support levels are at Rs. 293.05.

Now, speaking of Resistance levels, the very first hurdle is at Rs.376.35, being the resistance levels in the past. If the stock break passes that level, more upside can be seen with the target levels of Rs.406, Rs.430, Rs.481.

Pattern Identified is a triangular pattern, which depicts an uptrend. Thus, the next few trades could be very crucial to decide the stock’s movement.

The 200-ema traded above the 50-ema for a very long time i.e from mid 2018 to the mid of 2021. However, now the 50-ema crossed the 200-ema and is trading above it. This is a sign of a bullish trend. Even the stock took support on the 50-ema twice, which is a good sign. This means buyers don’t want the price to fall below its 50-ema price and thus maintaining a balance.

There has also been a spike in the volumes traded on a daily basis, which shows that bulk buying is happening or else investors are showing their interest, after a long distress in the stock.

Coming to RSI, which was 45.81 as on 24th December, 2021. Generally, RSI of 70-80 is considered as an overbought zone whereas RSI of 20-30 is considered as an oversold zone. Now, with RSI being at 45.81, the investors can go long in the stock, until the RSI reaches a range of 70-80. 

What can be expected??

The view is very clear and also the charts look very promising. Combining the technicals with the recent news of Zee-Sony merger, it can be said that the investors can see new targets approaching very soon.

Disclaimer : This is for educational purposes but not a trading suggestion.

Zee Entertainment – Fundamental Analysis

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