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Shares of Essel Group companies have been in the limelight over the last two trading sessions as the top shareholders of the company sought to revamp board composition.
The two biggest shareholders -- Invesco Developing Markets Fund and OFI Global China Fund LLC -- called for an extraordinary shareholders’ meeting to remove Punit Goenka as director of Zee Entertainment. Additionally, they have sought the appointment of six independent directors on the board.
However, the AGM on Tuesday did not discuss the notice sent by its largest shareholder to oust Goenka nor did the chairman discuss allegations of corporate governance lapses at the firm by the proxy advisory firms. READ HERE
Furthermore, ace investor Rakesh Jhunjhunwala and BofA securities picked stake in the firm on Tuesday via open market, igniting further interest in the stock. In the last two sessions, the market price of Zee Entertainment has zoomed 54 per cent. Zee Learn and Zee Media stocks too traded on a firm note, gaining up to 27 per cent in two trading days. READ MORE
Can the rally in Essel Group stocks continue? Here's what tech charts say:
Zee Entertainment Enterprises Ltd (ZEEL)
Likely target: Rs 350
Upside potential: 30%
The shares of Zee Entertainment Enterprises conquered a major resistance range of Rs 260-240 levels, reflecting a strong breakout from a medium-to-long-term perspective, as per the weekly and monthly charts. This breakout is hinting at a move toward Rs 350 – Rs 340 range, the next obstacle for the stock and also the 200-weekly moving average (WMA). The immediate support comes at Rs 230 and Rs 210 levels. CLICK HERE FOR THE CHART
Zee Learn Limited (ZEELEARN)
Likely target: Rs 24 and Rs 26 (after crossing Rs 20 )
Upside potential: 20% to 30%
The stock may witness the next breakout over its resistance level of Rs 20. Once that occurs, the rally may head in the direction of Rs 24 and Rs 26 levels, according to the weekly charts. Furthermore, the Moving Average Convergence Divergence (MACD) has crossed the zero line almost after 2 years, showing positive momentum in the upward direction. CLICK HERE FOR THE CHART
Zee Media Corporation Ltd (ZEEMEDIA)
Likely target: Rs 15
Upside potential: 30%
After crossing the major resistance at Rs 8, Zee media shares had seen over 50 per cent upside towards Rs 14.40 in the months of May and June. The recent weakness shows profit booking, which in turn reversed the momentum in the stock. The stock is currently near its 200-days moving average (DMA), placed at Rs 8.10 level. And if the stock holds the support of 200-DMA, the positive bias may see a rally towards Rs 15 levels. CLICK HERE FOR THE CHART
