Fundamental Study & Research Report
Zee has equity base of 95 cr with face value of Rs.1. It has got promoter holding of 43% including foreign promoter holding of 18%. It has got further 43% investment from FII. Indian retail holding is mere 2.50%.Thus it is seen that counter is in strong hands. Zee started its up move from 120 somewhere in may 2012.At the same time company announced buy back of shares at Rs.140 per share. Shares then went up to 150 immediately. Company bought back nearly 50 lacs shares from open market and recently buy back offer is closed. Company top line and bottom line growth is steady and there is no extraordinary growth seen for last 6 to 8 quarters. Since share price had risen sharply from 120 to 230 and outperformed the overall market its further up move seems to be limited.Retail holding is very limited and price action of the share looks speculative. Major income is from advertising and if general bearishness persists in industries ,then first casulity will be advertising expenses and ultimately sufferer will be Zee Ent.Hence it can be concluded that Zee can not be out performer as it was for some time and steadily become market performer and ultimately under performer once hot money investment i.e.43% FII starts drying. If Zee starts trading below 200 for some time then it may come down to 140 the price where Zee bought back shares from open market.
Technical Study & Reaseach
Date:- 13/4/2013
Positional call
Script name – ZEE ENTERTAINMENT LTD.
Technical call – sell ZEEL below 195 sl 220 target 170-150
Holding period – 2-3 months
Technical view – Zee Entertainment has enter into positional buying in a month of May of 2012 at 120-125 level and from there it has given one way movement till 241 level. At present ZEEL is already trading below its 100MA level of 215 and it’s having 200MA level at 195 levels and recently it has made low of 198.80 on 22/03/2013.
RSI also indicating weakness on chart as it has touch the oversold zone 24/12/2012 when the price was at around 230 level, but after that price moved till 241 level but RSI unable to break its higher level of 71.25 and it’s a clear indication of divergence. At present RSI is sustaining below 50 levels and it’s an indication of some weakness in stock.
Zee is creating chart patter of “FALLING TRIANGEL” and if it able to break down side support of 198-200 range and close below this, then this will the indication of weakness on chart.
Technical reading of chart – As we have already mention that ZEEL is having good support range of 195-200 level so if it able to break this range and close below given level then our positional sell call will get activated in ZEEL. But if it not able to break levels or not given close below desire level then we can also expect upside reversal in ZEEL. (So trader and investor should note this important point)