Top buzzing stock: PVR Limited

The company has reported decent fundamental numbers considering enormous disruption of the sector by the pandemic.

PVR Limited is engaged in the business of film exhibition and distribution and also earns revenue from in-house advertisement, bowling and gaming alley, and restaurant business. With a market capitalization of about Rs 9500 crore, it is one of the most promising midcap companies in the entertainment industry.

Being a strong growth company, the foreign institutional investors hold a major stake of about 30%, while the domestic institutions hold about 25%. The promotors and the public, each hold nearly 20% of the stake. Moreover, many mutual fund houses include this stock in their portfolio.

The short term performance of the stock has been phenomenal as it has delivered nearly 24% returns in just one month. It has surged over 4% on Friday and is reflecting the buyer’s interest. The stock had formed a base near 1250-level and has bounced back sharply thereafter. Overcoming slight correction lately, it is trading above its prior swing high. The technical parameters support bullish bias of the stock as RSI is trading above 60. ADX is on a rise and well above 25, which indicates a strong uptrend of the stock. Moreover, the stock trades above all the key short and long term moving averages, which is a healthy sign. Furthermore, the MACD line is above the zero line and signal line and indicates strong upside momentum of the stock. This strong uptrend is backed by above-average volumes, indicating increasing participation in the stock. It is also above its 61.8% Fibonacci retracement level of its recent downtrend, which indicates a change of sentiment.

The stock is showing several bullish signs and strong price action. It is expected is surge higher in the coming days and test the levels of 1650-1700 in a short period. And thus, traders shouldn’t miss out on an opportunity and look out for some quick profits!