Zee Entertainment Enterprises’ stock surged almost 25 percent in intraday trade on September 14, a day after its two most significant investors sought the ouster of three directors, including CEO Punit Goenka, in a bid to recast the board, a move hailed by analysts. Experts say the stock can rise to Rs 300-350.
- They advised aggressive investors to bet on the stock now but others should wait for a sizeable correction to pick the stock."Zee Ltd has already rallied today but I believe we may see a big upside from here if there will be any change in management, therefore, aggressive investors can bet on this stock but I would suggest avoiding other group companies as there are concerns of poor performance," Swastika Investmart's Meena said. Technically, "it is witnessing a breakout of falling channel formation and manages to move above its all-important moving averages where Rs 235/260 are important hurdles; above this, we can expect a move towards Rs 300/350 levels.
- On the downside, 200-DMA of Rs 205 will be an important support level," he added. Zee formed a head and shoulder pattern on daily charts but failed to give a breakdown below its neckline, Likhita Chepa said."Technically it is indicating a pullback in the near term.
- However, investors wanting to buy the stock should wait for a significant correction before investing," she said. After touching an all-time high of Rs 619 in February 2018, Zee shares corrected over the next two years to Rs 114 in March 2020."In this rally, we have seen the Lower Top and Lower Bottom patterns.
- From lows we have seen stocks trying to pull back but could not give much of that as compared to other stocks and indexes," said Viral Chheda, Analyst at SSJ Finance & Securities. The stock, which made a high of Rs 261 in February 2021, had corrected again and was moving in Rs 165-235 range.
- "We can say it is consolidating here as we can see more volume generating as compared to the previous rally.
- It has some resistance around Rs 261 and above that, it can move further upside till Rs 300-350 odd level in the next 10-12 months.
- Support is around Rs 165 and below that, it can slide till Rs 114."