Todays Pick

Zee Entertainment Enterprises (₹176.6): Sell

Yoganand D BL Research Bureau | Updated on October 26, 2020

Investors with a short term view can sell the stock of Zee Entertainment Enterprises. Following a sharp rally in August, the stock had encountered a key resistance at ₹225 in early September.

Subsequently, the stock changed direction triggered by negative divergence in the daily relative strength index and the daily price rate of change indicator.

While trending down, the stock had emphatically breached its 50- and 200-day moving averages and trades well below these moving averages. After a minor corrective rally in the past week, the stock met with a crucial barrier at ₹185 and continued to trend downwards.

On Monday, ZEEL plunged 4.9 per cent. The daily RSI has entered the bearish zone from the neutral region and the weekly RSI features in the neutral region.

The daily and the weekly price rate of change indicators are hovering in the negative territory. Targets are ₹169 and ₹166. Traders can sell with a stop-loss at ₹181. (Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

Published on October 27, 2020

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