The NIFTY Media Index is designed to reflect the behaviour and performance of the Media & Entertainment sector including printing and publishing in India. The Nifty Media Index overall may be on the ventilator but it is still not dead and there are still some hopes left for a rebound on short to medium term basis.
Nifty media sector may once again come in the limelight as its major contributors such as PVR, Suntv, Zeel, Inox Leisure, Etc are under the focus of the Bulls. In the month of October it had closed at the higher levels forming DragonFly DOJI (DragonFly Doji: A Dragonfly Doji is a type of candlestick pattern that can signal a potential reversal in price to the upside, It is formed when the asset’s high, open, and close prices are the same) on monthly chart. It is on the verge of breaking out from the falling supply trend line and is all set to head towards its psychological 2300 levels which also happen to be it’s 100 weekly moving average. The Relative strength index on the weekly chart is also turning from its 30 levels thus indicating a bounce on the index. It negated the formation of making lower highs – lower lows on the monthly chart and thus a slight push by the bulls may even take it to higher levels.
However, not every movie is a hit and not every video goes viral and just like the flop movies the positive rally in the index might also fizzle out if it fails to sustain above its 2000 levels and thus below that the support exists around 1650 levels.
Some of the major contributors in the index:
• PVR is consolidating near its lifetime high levels and now the support for the same exist around 1750 levels and on the upside, a move above 1820 may take it to 1900 zones.
• Sun tv moved above its 200 days moving average and if it manages to sustain above 520 levels it may head towards 590 zones while on the downside support is at 490 levels.
• Inox Leisure is making higher top higher bottom formation and is on the verge of moving towards lifetime high zones i.e 400 and higher levels while the support is at 350 levels.
Disclaimer: The above-mentioned stocks are not recommendations.
Author: Ayushi Bagri, AnandRathi Equity Research, 2nd November 2019