BSE: 532387 | NSE: PNC
Technically, the long-term charts plotted here show a rather devastating start to the counter, as it was in for some serious damage right after its listing. Despite being termed as fundamentally strong, this media counter had a grueling time trying to face the extreme selling pressure. Prices were seen cascading all the way from the high of 180 to a low of 15 during April ’01. From the chart, we can see that prices happened to test this region twice, a sort of double bottom. However, a smart rise from this low during April ’03 led prices to move up smartly covering about 75-80% of the prior sharp primary fall. This led to the formation of one set of accumulation pattern. Topping out around a high of 95 during Sept ‘04, prices slipped into corrective mode again. This dip formed higher set of bottom around 29 region and that added more strength to the long-term trend. A steady rise since then led the prices to give a top-to-top trend line breakout and also completed another set of accumulation pattern. The breakout region of both the prices comes to around 92. On the line chart , it more interesting to see that the breakout has already been occurred and the stock is trading at new highs on the monthly basis. This has therefore laid further evidences of bullishness to the trend and also chances of prices holding above the breakout region of 92 are brighter. If it happens then expect the pattern target of 170-180 in the medium to long-term and that is almost double from the current levels. However, one cannot ignore the rounds of periodic declines in the process of achieving the desired targets. Recent months have seen good increase in volumes, which generally indicates that the stock is generating lot of buying interest. Momentum indicators are seen placed in a positive mode on all time frame and indicating bullishness being intact in this stock.
Positive news feeds of the company has licensed the India Home Video rights of their recently successfully released film, Bow Barracks Forever to Big Music & Home Entertainment, a company in the ADAG Group will definitely make a good impact in this stock and further boost the ongoing uptrend the stock. With the overall outlook on the sector being bullish, we recommend long-term investments here at current and on dips down to 70.
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