Nifty Media inches higher on Dish TV, Nazara Tech gains

Sectoral benchmark Nifty Media was up more than 1 percent on April 21, largely supported by gains in Nazara Technologies and Dish TV , which have been under pressure for some time.

Nazara Technologies rose over 10 percent, its biggest single-day gain since September 2022. The stock also surpassed its 100-day moving average (DMA) intraday for the first time since January 2023. Dish TV saw an uptick 14 percent.

At 12.44 pm, Nazara Tech was up 8.88 percent on the NSE at Rs 579, Dish TV was trading 13.87 percent higher at Rs 15.60. The benchmark Nifty Media was up 1.26 percent at 1,705.50 points.

But not everyone is sold on the rally. Nazara Technologies’ market capitalization has declined over 13 percent in the past six months and more than 25 percent in past year.

“Nazara Tech is trading below all key averages, but today we are seeing some volume activity at the lower level, maybe there is a chance that a big player may have tried to do bottom fishing,” said Ratensh Goyal, a senior technical & derivative analyst at Arihant Capital Markets.

The chart is still not that attractive and at best, some short-term technical bounce back can been seen up to the Rs 620. On the downside, support will be at Rs 520-525, he said.

The buying interest in the stock may have stemmed from ICICI Pru Mutual Fund increasing the stake in the online gaming company to 5.11 percent from 4.91 percent

Follow our live blog for all market action

Earlier, domestic brokerage firm Prabhudas Liladhar pegged Nazara Technologies net profit growth at 347 percent YoY for Q4FY23 to reach Rs 10 crore.

It expects profit to decline 46 percent QoQ and projects net sales to increase by 72 percent YoY, while declining 4 percent QoQ to Rs 302 crore.

Dish TV sharp, too, has been under pressure, falling 7 percent over the past year and around 17 percent in 2023.

“Dish TV looks weak compared to Nazara and I don’t anticipate consistent buying in the stock. Around Rs 16/16.50 would be the major supply zone for the stock,” said Goyal.

“It is not advisable to go long on the stock, but if one has such positions keep the support around Rs 14. There is also no sign of any accumulation at the lower level which reflects that the momentum is difficult to sustain.”

Also Read: Bernstein adds RIL, Biocon, M&M to portfolio, removes 10% cash, covers short from IEX

In Q3FY23, the company reported a consolidated net loss of Rs 3 crore against a profit of Rs 81 crore in the year-ago period. Total income came in at Rs 567 crore, declining 21 percent YoY and 6 percent QoQ.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.