NDTV can hit Rs 450-level; Sun TV, DB Corp on slippery ground, charts show

NDTV hits 5 per cent upper circuit as Adani Group gets SEBI nod to buy additional 26 per cent stake; the media stock can rally to Rs 450, chart suggests.

Shares of NDTV were locked at the 5 per cent upper circuit on Tuesday after SEBI approved Adani Group's proposal to acquire additional 26 per cent stake in the media company. Last week, the Group had revised the open offer timeline, setting the date as November 22 to December 5, because of the delay in getting Sebi nod. . 

The open offer price stands at Rs 294 per share, with approximately 1.67 equity shares to be purchased with in the subscription period. READ MORE

Adani Group is a conglomerate with presence in airports, roads, water management, data centers, solar manufacturing, defence and aerospace, edible oils and foods, mining, etc. It has already obtained 29 per cent stake in the media company after its subsidiary Vishvapradhan Commercial Private Limited (VCPL) converted 400 crore loan into a company stake, given to RRPR (Radhika Roy Prannoy Roy) who had pledged 29 per cent equity of NDTV in case of default. 

Given this development, here's a technical check on NDTV and other media stocks, which so far today were seen trading with marginal losses.

Chart Check:
 

New Delhi Television Limited (NDTV)

Outlook: Resistance seen at Rs 400

NDTV, which, trades in the Trade-to-Trade (T2T) segment has hit the 5 per cent upper freeze post the news flow. Technically, the stock faces a resistance at Rs 400; upon conquering it the stock could see a fresh rally towards Rs 450 level. The immediate support for the stock exists at Rs 350 level.  The momentum indicator, Moving Average Convergence Divergence (MACD) is on the verge to cross the zero line; if that happens, the positive momentum could propel stock for further upside. CLICK HERE FOR THE CHART

Sun TV Network Ltd (SUNTV)

Likely target: Rs 473

Downside potential:  5%

Shares of Sun TV Network seems to have resumed the downward trend, after the south-based media major missed Street expecations on the earnings front. The company's net profit came in line to the last year’s quarter, while the revenue declined by 3 per cent. The stock had plummeted close to 9 per cent on Monday.

Amid the current weakness, the stock has breached the key support of Rs 523.75, its 50-day moving average (DMA), indicating further weakness in coming sessions. A trade below Rs 520, which was the earlier cushion mark, has prompted bears to grab the selling opportunity. The next support for the stock is seen at Rs 473, its 200-DMA, as per the daily chart. CLICK HERE FOR THE CHART

Network18 Media & Investments Limited (NETWORK18)

Outlook: Descending Triangle formation

There is a negative formation of a “Descending Triangle” on the weekly chart. If Network18 Media & Investments breaches Rs 60-level on consecutive basis, the weak trend could materialize into bearishness. On the higher side, the stock has multiple hurdle at Rs 70, followed by Rs 75. CLICK HERE FOR THE CHART

TV Today Network (TVTODAY)

Outlook: Fresh 52-week low could drive stock in a bear grip

TV Today stock failed to build a positive momentum above the key Rs 280 level. The subsequent decline has now raised concerns over its future prospects. The stock trades closer to its 52-week low of Rs 235.55. If the stock hits a fresh 52-week low slipping under Rs 235.55, it will open doors for the bears to drive stock to further lows. The immediate hurdle for the stock is placed at Rs 265 and Rs 285 levels. CLICK HERE FOR THE CHART

DB Corp Ltd (DBCORP)

Outlook: Stock is in a weak trend

Shares of DB Corp have gradually declined to lower lows in the last two months. This trend indicates weakness and degrading strength. The next support cushion for the stock exists at Rs 105 and upon breaking this mark, the selling spree could see elevated momentum. The major hurdles are placed at Rs 120 and Rs 125, shows the daily chart. CLICK HERE FOR THE CHART