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PVR, Inox Leisure: Trading ideas for multiplex stocks ahead of Unlock 3.0

A file photo of cinema-goers wearing 3D glasses watch a movie at a PVR Multiplex in Mumbai
Stocks of multiplex operators have been under pressure ever since the government announced a nationwide lockdown to arrest the spread of the Covid-19 pandemic. However, things may change for better with reports suggesting cinema halls and multiplexes may re-open from August 1 under the Unlock 3.0 to be announced by the government over the next few days. READ ABOUT IT HERE

Here is a look at what technical indicators suggest for key multiplex and media stocks, and how you should trade them. 

NIFTY MEDIA: A positive crossover of 50-day moving average (DMA) with 100-DMA has given a fresh momentum to the index. That said, for a fresh breakout, the index needs to cross 1,400 levels. The immediate trend suggests a move towards the breakout level with a closing basis support of Rs 1,310. CLICK HERE FOR THE CHART

PVR Ltd (PVR): After a sharp run up toward Rs 1,200 levels at the end of May, 2020, this counter has seen a decline. It started consolidating from mid-June till mid-July in the range of Rs 1,100 to Rs 920. Currently, the stock is decisively trading above its 100-DMA and also above its upper resistance level of the consolidation seen during this period. This should see buying momentum emerge gradually. Till this stock trade above Rs 1,000 levels, which is its 50-DMA, the chart pattern indicates a rally towards Rs 1,200 and then Rs 1,240 levels. The immediate support comes in at Rs 1,060 levels. CLICK HERE FOR THE CHART

  

Inox Leisure Ltd (INOXLESIUR): After resisting at 100-DMA in June,2020, this counter has a seen correction towards its 50-DMA. Now, as it conquers 100-DMA placed at Rs 245.40 levels, the upside momentum should emerge, which should take the stock towards Rs 280 and then Rs 300 levels. The support remains at Rs 234, which is its 50-DMA. The Moving Average Convergence Divergence (MACD) has crossed the zero line decisively, which indicates the upside direction with strong momentum in the sessions ahead. CLICK HERE FOR THE CHART

   

Zee Entertainment Enterprises Ltd (ZEEL): After a negative crossover of 100-DMA with 50-DMA, the counter has turned bearish . A clear horizontal trendline breakdown suggests resistance in the range of Rs 165 to Rs 160 levels. The overall trend shows downward correction towards Rs 120 levels. The volumes have gone up during the recent fall, indicating bears are gaining control. CLICK HERE FOR THE CHART

  

Sun TV Network Ltd (SUNTV): From late April 2020, this counter is trending up with a support of 50-DMA and 100-DMA. On the higher side, however, Sun TV has struggled to cross 200-DMA. At the current levels, the 100-DMA placed at Rs 372.60 is acting as a strong support for the stock. A breakout above Rs 392 may see Rs 405 and Rs 411 levels on an immediate basis. A bigger breakout should happen at Rs 430 levels. The overall trend looks promising till 100-DMA is held on a closing basis. The last session's volume is three times the average of the last seven sessions, which also is a positive sign and suggests that the price could move up. CLICK HERE FOR THE CHART

 



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