Over the past couple of months, the Media stocks are showing some improvement in their relative performance against the broader markets. They had grossly underperformed in the past the most recent weeks have shown them trying to make a comeback. The Media stocks might not have been leading the market performance as of now but they are slowly inching towards their beginning of relative outperformance against the markets in general. Out of NIFTY Media  Index, Zee Entertainment Enterprises Ltd. (ZEEL) is one such stock that might see some upward revision in its price over the immediate short term.

Following the most recent high marked near 378 levels, ZEEH has shown corrective retracements; it has bounced on a couple of occasions but has resisted the two falling trend lines as evident from the chart. The most recent price action has seen the stock developing a bullish Ascending Triangle Pattern on the chart. 

The placement of the Relative Rotation Graph shows the stock about to roll over in the improving quadrant. The OBV is seen inching sharply higher; this shows that the most recent up move that the stock saw was backed by volume participation. The RS line against NIFTY500 has also crossed above the 50-period moving average.

The RSI is seen trying to break above the falling trend line pattern resistance. The daily MACD has shown a positive crossover; it is now bullish and trades above the signal line.

Any price move above 258-260 levels will lead to a breakout from this bullish Ascending Triangle; the most immediate resistance the stock may face is the 200-DMA which is presently at 272. If this is taken out, levels of 290-292 cannot be ruled out.

Any close below 240 should be used as a protective stop for this expected move in the price.

Foram Chheda, CMT

This telecom stock has seen some classical technical patterns playing out very well on the charts. BHARTIARTL marked a classical double top resistance near 780  levels between November 2021 and April 2022 that spanned over five months. The most recent price action shows the price trying to chart a potential breakout with multiple pieces of evidence supporting this attempt.

After forming a double top resistance near 780, BHARTIARTL slipped under corrective decline; this took the price near 640 over the next couple of weeks. The levels of 635-640 have acted as a strong support area for the stock multiple times as evident from the chart. The price tested this pattern support a couple of times in the recent past only to bounce back from those levels.

The most recent price action on the chart has seen the price in a narrow trading range between 640-695 levels. The price has tried to break above this pattern resistance zone by penetrating the upper trend line. As of today, the stock has closed a notch above its 200-DMA which stands at 703.07.

The RSI is also seen breaking out of a pattern formation much ahead of the price breakout which is bullish. The indicator has also marked a new 14-period high which is bullish; however, it is neutral and does not show any divergence against the price.

Over the last several months while the prices declined, OBV (On-Balance Volume) stayed sideways and did not decline with the price. This means lesser volume participation during the corrective phase of the stock.

Over the past few days, while the stock makes an attempt to stage a breakout, the volumes have remained stable around their 25-day average. The stock remains in the improving quadrant of the RRG.

There are high possibilities of the stock inching higher and confirming a breakout from the trading zone that it has formed. If the prices move on the expected lines, the possibilities of the stock testing 725 and 740 levels cannot be ruled out. Any close below 675 will fail this attempt and the projected move.

Foram Chheda, CMT