• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• BL Club
• Smartbuy

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

We recommend a sell in Zee Entertainment Enterprises from a short-term perspective. It is evident from the charts that the stock has been on medium-term down trend from September high at Rs 239. Moreover, the long-term trend is also down since its all-time high at Rs 362 recorded in October 2007. However, the stock recently found support at around Rs 100 and made a corrective up move to the resistance level at Rs 125. After encountering twin resistance at Rs 125 (a resistance and medium-term down trendline), the stock resumed its downtrend by plummeting 6 per cent on November 26. We also notice formation for bearish engulfing candlestick pattern at this resistance level, indicating bearish reversal. The daily relative strength index has re-entered the bearish zone from the neutral region and the weekly RSI is featuring in this zone. Considering that the medium-term down trendline continues to be intact, we are bearish on the stock. We expect the stock’s decline to continue until it hits our price target of Rs 102 in the forthcoming trading sessions. Traders with short-term perspective can sell the stock while maintaining a stop-loss at Rs 120.

Yoganand D.
BL Research Bureau

More Stories on : Stocks | Recommendation | Zee Telefilms Ltd

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Copyright © 2008, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line