Den Networks surges 20 per cent with volume spurt, hits 52-week high

Small-cap broadcasting and cable TV company, Den Networks hit an upper circuit at 20 per cent in intraday trade making a new 52-week high at 133.55 levels. The stock sustained optimism through the day despite a sudden retreat in the markets.

Along with ZEEL and Sun TV that form 62.5 per cent of the Media index, Den too helped the whole index to outperform all to other sectoral indices, hit all-time high and stay 1.87 per cent up. Recently, the company was in news with its expected acquisition of cable television distribution company VBS Digital. The company is expected to buy 51 per cent stake in VBS Digital.

Technically, Den Networks had give an Ascending Triangle breakout at 105 on December 5. However, the stock witnessed a zig-zag movement thereafter where the prices also hit the upper trendline level at the end of December 2017. On Friday, the stock broke out of the zig-zag range with volume spurt and 14-period RSI positive crossover.

In the weekly time frame, the stock also gave downward sloping trendline breakout at 108 levels and hence, going forward if the stock sustains above 134.50 on closing basis it holds a potential to give at least 35 followed by 50 plus points upside from the current levels in the near-term. The stock may move straight or after a pullback as it gave a double-digit growth in intraday trade.