Zee Entertainment Enterprises

We recommend a sell in Zee Entertainment Enterprises from a short-term horizon. It is apparent from the charts of the stock that it has been on an intermediate-term downtrend from its September 2008 high of Rs 239. The stock has been forming lower troughs and lower peaks since then. In mid-February, the stock encountered resistance around Rs 130 from its down trendline and resumed its intermediate-term downtrend. On February 27, the stock tumbled by 13 per cent. This selling interest prolonged and the stock plummeted by 6 per cent on March 2. The stock is trading well below its 21- and 50-day moving averages. The daily relative strength index (RSI) is on the brink of entering the bearish zone from the neutral region. The weekly RSI is already featuring in the bearish zone. Moreover, the daily moving average convergence and divergence indicator is signalling a sell. We are bearish on the stock from a short-term perspective. We anticipate the stock to decline further until it hits our price target of Rs 90. Traders with short-term perspective can sell the stock while maintaining a stop-loss at Rs 105.