ZEEL to render both entertainment and profits

Nifty Media Index succeeded in giving a multiple resistance breakout around 3180 levels with high volumes and RSI positive crossover. Finally, Media Index got a positive trigger driven by 3.4 per cent surge in heavyweight Zee Entertainment Enterprises. ZEEL which holds 49 per cent in Nifty Media Index also holds position in Nifty Fifty index and was the top gainer on Wednesday.

ZEEL has given a multiple point downward sloping trendline breakout at 548 levels after nearly 16 sessions of struggle. The breakout on Wednesday is supported by high volumes and 14-period RSI positive crossover trailing currently at 66 levels. The stock has formed a kind of symmetric triangle breakout on weekly charts with justifiable volumes and bounce back in the RSI oscillator. Moreover, the stock has been consistently taking support at its 100 weeks EMA support which currently quotes at 481.40 levels.

We are bullish on the stock for some more momentum in the coming sessions. The stock may continue with the upswing as the stock has given a sixth wave breakout of symmetric triangle or else witness a pullback up to 520 levels for a bounce back. As it is, the company has sufficient levers for continued investment and hence is expected to achieve 30 per cent and more margins in coming fiscals.