PVR gives multiple resistance breakout, sees potential upside

Indian stock markets sustained optimism throughout the day on Monday with many sectoral indices outpacing the benchmark indices with more than 1 per cent gains. One amongst them was Nifty Media index. Apart from Media giant Zee Entertainment which gained 1 per cent on closing basis, PVR was the stock which lifted the index to close 1.2 per cent up.

PVR, the film entertainment company engaged in movie exhibition, production and distribution, holds 6.5 per cent weightage in the Nifty Media index. Apart from the news-based move of the company opening multiplexes and screens in the first week of January 2018, the stock has a robust technical support in its share price movement.

Finally, the stock succeeded in breaching its multiple resistance at 1450 levels on closing basis on Monday. The stock had attempted a breakout on December 22, but soon witnessed a pullback up to 38.2 per cent retracement level of the prior upward rally. The support was also near to its 20 days EMA support at 1380-1390. The stock has also formed an Inverse Head & Shoulders pattern which started in July 2017. Monday’s breakout is supported by rising volumes and 14-period RSI positive crossover. With this, the stock has a potential upside of up to 1650-1750 levels in the medium term.