Cabinet approves 100% FDI in DTH sector; should you buy related stocks?

A sustained move above Rs 38 levels may see an aggressive upside in Hathway Cable and Datacom

Shares of Direct-to-home (DTH) service providers came under investor radar on Thursday, a day after the Union Cabinet approved changes to allow 100 per cent FDI in the DTH broadcasting services sector. It also said that licences will now be issued for 20 years with a renewal provision after every 10 years. At present, DTH licences are issued for 10 years. READ MORE

On the BSE, shares of Hathway Cable and Datacom, Den Networks, and GTPL Hathway zoomed between 5.4 per cent and 6.6 per cent in the early morning deals. Shares of Dish TV, however, were down around 4.5 per cent on profit booking, having surged 17 per cent in the intra-day deals on Wednesday. In comparison, the S&P BSE Sensex was ruling 330 points, or 0.7 per cent, higher at 46,773 levels at 10:55 am. 

Let's take a look at how these stocks look on charts:

Dish TV India Limited (DISHTV): The Zee Group company is trading near the resistance level of 100-weekly moving average (WMA), placed at Rs 17.50 levels. The stock has, so far, managed to hold its 50-WMA levels successfully, which is also its support zone, placed at Rs 9.30 levels. Now, with a positive crossover of the Relative Strength Index (RSI), the strength and momentum in the stock seem to show a bullish bias and the scrip is attempting to test the resistance of 100-WMA. The biggest breakout is expected above Rs 20 levels. CLICK HERE FOR THE CHART
 
Hathway Cable & Datacom Limited (HATHWAY): With a positive crossover of 50-WMA with 100-WMA, the counter is set to rise higher towards Rs 44 levels. The daily chart strongly suggests support of the 200-days moving average (DMA), placed at Rs 29 levels. A sustained move above Rs 38 levels may see an aggressive upside. The volume strength in the stock is also showing an increased interest in the stock.  CLICK HERE FOR THE CHART      
 
Den Networks Limited (DEN): The DTH service provider's stock recently breached below the 200-DMA levels, placed at Rs 66.40. This downside may see an accelerated move if a reversal does not emerge. Furthermore, DEN needs to decisively stay above Rs 68 levels to regain the losing momentum. A continuous decline below 200-DMA may see a downside towards Rs 50 levels. The current scenario suggests a "Wait and watch" outlook on the stock. CLICK HERE FOR THE CHART
 
GTPL Hathway Limited (GTPL): The weekly chart clearly illustrates a resistance zone around Rs 135 levels. The stock has attempting to conquer this resistance since October 2020, but hasn;t been successful so far. A firm move above Rs 135 may see a strong upside towards Rs 150 as the positive crossover of 50-WMA and 100-WMA clearly shows a support. On the downside, the closing basis support stays at Rs 110 levels. CLICK HERE FOR THE CHART