[Premium] Media Recovers From Current Levels

Since the recovery of March 2020, the index has been making higher highs and higher lows on the weekly time frame, indicating growing strength in the sector. A minor pullback held onto higher levels of RSI at 47, indicating a positive shift in momentum. Our risk management level is 1410, with an upside towards 1670 and 2000 as long as prices are above that level.

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Here we have Nifty Media relative to Nifty 500 showing a potential positive momentum divergence with the recent correction ending well above the oversold zone. While this doesn't suggest massive outperformance is ahead, we can at least use this slowing downside momentum to identify any potential opportunities in the sector.

Among the media stocks, one that stands out from the perspective of momentum and reward/risk ratio is TV18 Broadcast Ltd. RSI moving above 70 in June had given an indication of the stock moving into positive territory.

Since then it has pulled back towards its initial breakout level of 28, while momentum remained out of the oversold territory. As long as the price remains above 28, we think momentum can take it to levels of 40 and 50 in the weeks and months ahead.

TV Today Network can be looked at above levels of 261, once it breaks out of this consolidation. Targets of 330 and 510 can be expected, with 261 acting as our risk management level.

Sun TV is positive above the resistance level of 490, for a target of 660.

A bullish momentum divergence can also be seen in Jagran Prakashan. Short and medium targets are 50 and 75 once it moves above the resistance level of 43, which was also an important level back in 2008-2009.

DB Corp has been knocking against its resistance at 85. Once breached, prices can head towards 130 in the coming weeks and months. This is a good example of a long-term downtrend that is attempting to find its footing.

Navneet Education is settled above a long-term resistance level. Currently placed at its immediate resistance of 83, a move above this level can take the price to levels of 115 over the coming months.

Overall, the Media Sector remains a laggard over the long-term, but we're seeing some improvements at the index and individual stock level on an absolute basis.

If these stocks can stay above their respective support/resistance levels, then they can slowly work their way higher and shift to more positive long-term trends.

Thanks for reading and please let us know if you have any questions.

Allstarcharts Team