We recommend a buy in the stock of Zee Entertainment Enterprises from a short-term perspective. It is apparent from the charts of the stock that it has been on a long-term uptrend since late 2012 low at around Rs 110. Medium- as well as short-term trends are also up for the stock. In early June, the stock took support at Rs 215 and resumed its uptrend.

On Monday, the stock emphatically breached its key resistance at Rs 240 by surging almost 5 per cent accompanied by above average volume. The up move has also conclusively breached its 21- and 50-day moving averages and the stock is hovering well above them. Both daily and weekly relative strength indices have entered the bullish zone from the neutral region. The daily moving average convergence divergence indicator has signalled a buy and is on the brink of entering the positive territory from the neutral territory. The daily as well as weekly price rate of change indicators are hovering in the positive area imply buying interest.

Considering the stock’s breakthrough of key resistance and uptrend that is still in place we are bullish on the stock from a short-term perspective. We expect its uptrend to continue and reach our price target of Rs 258 or Rs 263 in the upcoming trading sessions. Traders with short-term perspective can buy the stock with stop-loss at Rs 242.5 level.

( Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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