Nifty Media sector has witnessed a kind of rectangular pattern after a sharp fall from its 52-week and all-time high of 3297.05, where the index had halted for almost four to five weekly sessions before a fall. The Media index is seen struggling at the upper band of a rectangular pattern at 3160-3180 level with 14-period RSI reversal restricted at 60 levels. However, the index is seen consolidating for almost seven consecutive sessions with lack of major trigger after exuberant results from Nifty Media heavyweight, ZEEL.
Zee Entertainment Enterprises which holds 49% weightage in Nifty Media index posted 2.7% revenue growth in September 2017 quarter while its PAT grew robust at 135% driven by realization from sale of its brand TEN Sports. Going forward, the company is expected to penetrate into international geographies to tie-up with international media brands.
Encouraged by strong investor appetite and robust trading performance on its existing Indian Single Stock Futures (SSF), the Dubai Gold & Commodities Exchange (DGCX), having received regulatory approval, announced the launch of an additional 44 blue-chip Indian SSFs, further expanding its Equities asset class vertical. ZEEL is one of the stocks added to the Index.
Coming back to the technical aspect of ZEEL, the stock is trailing near its multiple point downward sloping trend-line breakout at 550 level. The stock is consolidating below these levels and is waiting for some news based trigger to lift the stock upwards. Currently, the lower volumes and the RSI trailing just below 60 level is restricting the stock from gaining grounds. The stock may show a strong upside in the coming sessions if it breaches above 550 level. Traders should watch for the levels to breakout and keep stock in radar.