PVR, Inox Leisure: Reopening of cinemas in West Bengal can trigger a rally

PVR and Inox Leisure gained ground on Monday morning, after West Bengal Chief Minister Mamata Banerjee said on Saturday that cinema halls and open-air theatres will be allowed to operate in the state from October 1 with a limited number of participants.

Is it a good time to buy stocks of multiplex operators amid unlocking of the economy? Here's what charts suggest.

NIFTY MEDIA: A “Golden Cross” with a breakout above 1,700 may see a sharp rally towards 2,000 levels from a medium-term perspective. On Monday, the index managed to reverse and cross 50-days moving average (DMA) with an accumulation around 200-DMA, as per the daily chart. The overall trend is bullish with corrective moves witnessing buying momentum. The current support is at 100-DMA, which is located around 1,392 levels. CLICK HERE FOR THE CHART
 
PVR Ltd (PVR): The Relative Strength Index (RSI) was resilient and did not enter the oversold territory. The stock discovered a strong rebound around 31 value, as per the daily chart. Now, with a strong Gap up opening on Monday, the counter is set to rally towards the resistance of Rs 1219, which is its 50-DMA levels. This simultaneously brings a positive crossover of RSI igniting upward strength and if the price stays stronger on strength and assures an increase in volumes, the trend may move in the direction of 200-DMA, placed at Rs 1,339 levels. CLICK HERE FOR THE CHART

       
Inox Leisure Ltd (INOXLESIUR):  This counter has seen selling pressure around 200-DMA, which resulted in a mild correction that witnessed a reversal at 100-DMA, placed at Rs 248 levels. As of now, the price is struggling to cross the resistance of Rs 268 on a closing basis, which is its 50-DMA. If it manages to cross this level on good volume, then an upside cannot be ruled out, which can take Inox Rs 300 levels in the sessions ahead. This level will be close to its 200-DMA as well. CLICK HERE FOR THE CHART