ICICIdirect has issued a technical Buy call on Zee Entertainment. The stock broker recommends buying stock in the range of Rs 280-285 with target Rs 350 within three months time.
Commenting on the investment rationale, stock broker said,"Zee entertainment has shown a tendency to consolidate for a few months and stage a strong bounce back. We expect it to test Rs 350 in the days to come.
The open interest in the stock has increased more than 36% indicating addition of short positions. However, as the stock has found support near Rs 270 once again, a round of short covering cannot be ruled out.
We expect the stock to surpass its August highs in the near term. Recently, delivery based activity was seen in Zee Entertainment near Rs 275. The stock is recovering after making lows near Rs 273. We believe the recent buying seen in the stock may continue in short-term."