These companies reported turnaround in Q1; what lies ahead for stocks?

Zee Entertainment, PB Fintech, Delhivery among select companies to report a turnaround in the June 2024 quarter. Here's a technical outlook on select such stocks.

Amid the ongoing Q1 results season for the financial year 2024-25, several companies have reported a turnaround on the earnings front. Zee Entertainment and PB Fintech are among the prominent firms to report profit in the June 2024 quarter against a net loss in the year ago quarter.

Zee Entertainment reported a net profit of Rs 118.10 crore for Q1FY25 as against a net loss of Rs 53.42 crore in Q1FY24. Meanwhile, the parent company of PolicyBazaar - PB Fintech posted a profit of Rs 60 crore in the June 2024 quarter as against a loss of Rs 12 crore in the corresponding period a year ago.

Can the turnaround on the earnings front result in a gain in the stock price on the bourses? Here's what the charts suggest for select such turnaround companies.

Zee Entertainment

Last close: Rs 137

Support: Rs 130

Resistance: Rs 155

On the bourses, Zee stock has been a major underperformer and has tumbled almost 50 per cent so far in this calendar year. In comparison, the BSE Sensex has gained around 10 per cent.

Technically, the stock is seen trading below its key moving averages, thus indicating a negative trend at the counter. The overall bias is likely to remain negative as long as the stock trades below Rs 155. On the downside, the strong support for the stock is seen around Rs 130 levels. CLICK HERE FOR THE CHART 

PB Fintech

Last close: Rs 1,514

Upside Potential: 6.7%

Support: Rs 1,462

Resistance: Rs 1,530; Rs 1,572

The stock has been trading on a bullish note on the weekly scale post the breakout in mid-February 2023. The stock has since surged over 213 per cent from levels of Rs 485. 

Even as the stock trades in a fairly overbought zone; the key momentum oscillators continue to indicate strength and the stock may rally to Rs 1,615 on the higher side. Interim resistance for the stock can be expected around Rs 1,530 and Rs 1,572. Support on the downside is seen at Rs 1,462. CLICK HERE FOR THE CHART

Graphite India

Current Price: Rs 520

Downside Risk: 12.3%

Support: Rs 472

Resistance: Rs 554; Rs 587

Graphite India reported a profit of Rs 237 crore when compared with a loss of Rs 30 crore in the June quarter.

The stock has witnessed a dismal run in the last four months, and has declined 14.2 per cent during this period. The overall bias of the counter remains tepid, as the stock trades below key moving averages both on the daily and weekly scale. 

The near-term bias is likely to remain negative as long as the stock trades below Rs 554 - Rs 587 resistance zone. On the downside, the stock seems headed towards its 100-DMA at Rs 456; with interim support expected around Rs 472. CLICK HERE FOR THE CHART 

Delhivery

Current Price: Rs 410

Upside Potential: 7.3%

Support: Rs 393

Resistance: Rs 420

In comparison to a net loss of Rs 89.48 crore in Q1FY24, Delhivery reported a net profit of Rs 54.36 crore in Q1FY25. 

Technically, the overall bias at the counter seems subdued as the short-term moving averages are seen languishing below the longer-term averages. Further, the daily and weekly chart shows presence of a strong resistance around Rs 420 levels. 

Having said that, the 20-DMA is on the verge of crossing the 50-DMA and the key momentum oscillators also seem to be favourably placed. As such, break and sustained trade above Rs 420 can trigger a sharp rally at the counter. On the upside, the stock can potentially rally to Rs 434 - Rs 440 levels. For now, support on the downside is visible at Rs 393. CLICK HERE FOR THE CHART

Devyani International

Current Price: Rs 177

Upside Potential: 15.8%

Support: Rs 166

Resistance: Rs 177; Rs 180

Devyani International, the largest franchisee for Yum Brands (KFC & Pizza Hut) reported a net profit of Rs 22.43 crore in the June 2024 quarter as against a net loss of Rs 1.59 crore in the June 2024 quarter.

On the charts, the stock is seen attempting a breakout on the weekly scale as its tests the multiple resistance zone around Rs 177 - Rs 180 levels. A weekly break and close above Rs 180 shall open the doors for further gains up to 205 levels. The near-term bias is likely to remain cautiously positive as long as the stock holds above the 20-DMA at Rs 166. CLICK HERE FOR THE CHART