Technical Analysis

Zee Entertainment faces key resistance ahead

Yoganand D | Updated on March 31, 2019 Published on March 31, 2019

Crossing the hurdle in the ₹480-500 range can take the stock to ₹550

Here are answers to readers’ queries on the performance of their stock holdings.

I have shares of Zee Entertainment Enterprises Ltd (ZEEL) at ₹440 each. Should I hold or sell these shares?

Harish Bale

Zee Entertainment Enterprises (₹444.3): Following a long-term uptrend, the stock encountered key resistance in the band between ₹600 and ₹620 in January 2018.

This resistance zone limited the stock’s rally in May 2018 and, thereafter, it began to decline. Since then, it has been in an intermediate-term downtrend. The stock witnessed a sharp plunge in late January this year and breached key supports at ₹420 and ₹320 in a single session and recorded a multi-year low at ₹288. Subsequently, it bounced up, recovering from the oversold territory.



The stock has been in a medium-tem uptrend since then. But it could face key resistance ahead in the ₹480-500 range, from which it began to decline in early March.

A strong break above this resistance can strengthen the medium-term uptrend and take the stock higher to ₹550.

A further breakthrough of the key medium-term resistance at ₹550 will alter the intermediate-term downtrend and take the stock up to ₹600 and ₹620 levels over the long run.

You can consider averaging the stock in declines, while maintaining a fixed stop-loss at ₹380.

On the downside, the stock has key supports at ₹420 and ₹350.

An emphatic downward break of ₹350 will strengthen the downtrend and drag the stock down to ₹300 or ₹288 once again. Investors with a long-term perspective can also consider holding the stock with a stop-loss at ₹380 levels.

I want to know trend for the stock of Gallant Metal.


Gallantt Metal (₹49.7): The shares of Gallantt Metal have been volatile, with very low liquidity in the counter as well. It tends to move from circuit to circuit.




After encountering resistance at ₹65 in November 2018, the stock began to trend downwards. Since then, it has been in a medium-term downtrend. Key resistance at around ₹55 is capping the upside. A strong break above ₹55 will alter the medium-term downtrend and take the stock up to ₹58 and ₹62 over the medium term.

On the other hand, a conclusive fall below the ₹42-45 band will reinforce the downtrend and drag the stock down to ₹40 and ₹36 in the medium term.

Generally, investors with a long-term perspective should avoid buying stocks that have low liquidity and which move from circuit to circuit as they don’t provide clear buying or selling opportunity.

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