Zee surges 15% as Invesco withdraws EGM notice for Punit Goenka's removal

Shares of Zee Entertainment Enterprises (Zee) surged 15 per cent to Rs 294.45 on the BSE in Thursday’s trade at 09:30 am; after the company's largest shareholder, Invesco, decided to withdraw its EGM requisition notice, which sought removal of Managing Director and Chief Executive Officer (MD & CEO) Punit Goenka from the board of ZEE.

A combined 2.5 million equity shares changed hands at the counter and there were pending buy orders for 6.9 million shares on the NSE and BSE till the time of writing of this update. The stock trades in the futures & option (F&O) segment, which has no circuit limits. The stock had hit a 52-week high of Rs 378.60 on December 15, 2021.

Invesco Developing Markets Fund, which owns 18 per cent stake in Zee Entertainment, has backed the Zee merger with Sony and has decided not to pursue litigation against Zee. READ MORE

The Bombay High Court on Tuesday had allowed an appeal filed by Invesco Developing Markets Fund, the largest shareholder of Zee, against a single-judge order granting interim injunction on holding an EGM to remove Zee's CEO Punit Goenka.

In September 2021, Invesco had put out a requisition to the Zee Board of Directors to hold an EGM on the grounds that it felt the company was not running as smoothly as desired.

The firm sought to remove three directors from the Zee's Board, including MD & CEO Punit Goenka. CLICK HERE FOR FULL REPORT

Tech view

Zee Entertainment

Resistance: Rs 300-315 

Support: Rs 266

Thursday's gap-up open has helped Zee breakout above the upper-end of Bollinger Bands on the daily chart, placed at Rs 278. The stock currently seems to be testing resistance at its 100-DMA (Daily Moving Average), placed at Rs 300.50. Above this level, the next hurdle for the stock shall be the trendline resistance at Rs 316, as per the weekly charts.

If the stock is able to sustain above the 100-DMA for consecutive trading sessions, it can possiblly test Rs 316 or rally further higher towards Rs 332-odd levels. In case of a downside, the stock is likely to seek support around Rs 266-odd levels (200-DMA).

That said, the price-to-moving averages action presently does not support a bullish bias. The 20-DMA (Daily Moving Average) is below the 50-DMA and 100-DMA, thus indicating a downward bias for the stock.

Among the key momentum oscillators, the 14-day RSI (Relative Strength Index), DI (Directional Index) and the MACD (Moving Averages Convergence and Divergence) are in favour of the bulls, while the Slow Stochastic is in the overbought territory.

(With inputs from Nikita Vashisht)