Bank stock jumps 5% after Tikri Partners bought 2.2% stake in the company via bulk deal
The broader markets aren’t looking to stop anytime soon. After yesterday’s sell-off from the higher levels it seemed like a probable correction would soon take place but amid today’s spurt, the bulls have again shown their strength.
One counter from the small-cap space that might deliver decent gains in the near future, on the back of a strong chart and positive broader market sentiments is TV18 Broadcast Ltd. (NS:TVEB). It is a well-known tv broadcasting network with a market capitalization of INR 6,737 crores and trades at a P/E ratio of 52.07. FIIs hold a decent stake of 8.54% in the company, as of March 2023 which is a big thing considering the small size of this broadcaster.
Image Description: Weekly chart of TV18 Broadcast with volume bars at the bottom
Image Source: Investing.com
In the last one year, the stock didn’t move much and delivered a mediocre return of 11.2% but the daily setup after today’s 9.16% gain to INR 42.9 is projecting a good upside. The stock has completed an inverted Head & Shoulders chart pattern which is a trend reversal indication and a prominent one at that. It is a mirror image of a more popular Head & Shoulders pattern which reverses an uptrend towards a downtrend.
Today’s price gain was also accompanied by a volume spurt. A total of 113.7 million shares have exchanged hands on the NSE which was the highest one-day figure in over a year. This shows a massive buying interest as the stock readies to move up, breaking above the falling neckline resistance of the H&S pattern.
This pattern is more visible on the weekly chart and therefore the targets are also very high, due to a long time frame. As per the dimensions of it, investors might be in for a surprise as the stock now holds the potential to rally to around INR 56, giving it a lucrative upside of 30%. Ideally, the bottom of the right shoulder is used to place stop loss, which in this case is INR 36.5.
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