Media stocks traded higher on Friday, outperforming the broader Indian market, with the Nifty Media index gaining as much as 1.64%.
Zee Entertainment Enterprises (ZEE) led the gains, surging more than 8%. PVR INOX, DB Corp and Tips Music also advanced over 1% each. On the other hand, Prime Focus, Saregama India and Hathway Cable & Datacom shares traded lower.
The rally in media stocks was largely driven by ZEE shares after the company received favourable relief from the Securities Appellate Tribunal (SAT).
SAT granted interim relief to Zee Entertainment from a Securities and Exchange Board of India (SEBI) order, allowing the company to proceed with its preferential warrant issue.
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The tribunal also allowed ZEE to access mutual fund units for dividend distribution. However, the interim relief is subject to certain conditions, including the payment of a penalty.
Following the ruling, Zee Entertainment shares jumped as much as 8.1% to hit an intraday high of Rs 104.70 apiece.
Zee Entertainment Technical Outlook
Zee Entertainment shares have staged a pullback from their recent low of Rs 90, recorded on August 11, amid a healthy rise in trading volumes, indicating renewed buying interest at lower levels, according to Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities.
“The rising ADX points to strengthening bullish trend momentum, while the RSI has rebounded sharply from 36 to 51, signalling a revival in bullish momentum,” Shah said.
He noted that the Rs 90–88 zone is likely to act as an immediate support area for the stock.
“As long as Zee shares sustain above this zone, the pullback is likely to extend further on the upside,” Shah said.
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