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Traders with a short-term perspective can take a bearish call in Zee Entertainment Enterprises, as price has registered a fresh lower low on the daily chart. Notably, the stock has breached the support at ₹270.
The stock, which was quoting at ₹600 a share began to trend lower in May 2018. The downtrend has been intact since then where the stock tumbled and made a 52-week low of ₹199.15 in September 2019, losing one-third of its value by then. The stock attempted to recover from that low and rallied to ₹360. However, it witnessed renewed selling pressure and resumed its downswing. On Monday, it closed below the support at ₹270, opening the door for further weakness.
The bearish view is corroborated by the daily RSI, which is below the midpoint level of 50 and showing fresh downtick. Also, the stock has slipped below both 21- and 50-DMAs. Hence, traders with a short-term perspective can initiate short position on rallies with a stop-loss at ₹272 for a target of ₹238.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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