SC relief fails to cheer multiplex stocks; PVR, Inox trend may turn bearish

PVR and Inox Leisure stocks must defend key levels to avoid turning bearish, show technical charts

Shares of multiplex chains slipped in red on Thursday, even after the Supreme Court (SC) granted a big relief to multiplex owners, stating they have the right to prohibit carrying outside food as they are the property owners and deserve rights to set terms. 

The SC verdict came in favour of multiplex companies, which inevitably should have reflected in the positive share movement. On Thursday, shares of PVR and Inox Leisure fell 1.15 per cent and 0.90 per cent, respectively. Over the last couple of months, shares of multiplexes chains have traded sideways. 

Meanwhile, the merger announced between PVR and Inox Leisure in March 2022 led both the entities to record new historic peaks. While Inox Leisure went to hit fresh highs following the merger announcement in the same month, PVR took a while to reach a historic peak of Rs 2,214.75 in August 2022.

However, both stocks are currently trading close to the March 2022 levels and have underperformed when compared to the overall returns delivered by the stock market. The benchmark indices, the BSE Sensex and Nifty 50 have gained close to 4 per cent since March last year.

Here’s the technical outlook to help you understand the next trend in multiple stocks:-

PVR Ltd (PVR)

Outlook: Weak beneath Rs 1,600

Since September last year, PVR shares have been tussling to overcome the barrier of Rs 2,000 mark. The inability to do so has led the stock to lose more ground, inevitably impacting the overall sentiment. At current juncture, the support of Rs 1,600 is holding the weakness, and if this mark is negated, a short-to-medium term weakness may then grasp the stock price action. Next support for the stock exists at Rs 1,480 levels. 

There are consecutive barriers for the stock on the upside. The stock initially needs to take out Rs 1,800 and thereafter Rs 1,950 to regain a positive aggression for further rally. While the technical oscillator, the Relative Strength Index (RSI) took a lift from the oversold terrain, the negative crossover of the Moving Average Convergence Divergence (MACD) still haunts the uptrend. CLICK HERE FOR THE CHART

Inox Leisure Ltd (INOXLESIUR)

Outlook: Rs 564 stays as a crucial level

There was a consolidation phase in the range of Rs 560 to Rs 490 since August last year, which the stock lately breached on the downside. However, the follow-up move failed to incur more downside, and the stock exhibited a smart reversal. 

Thus, until the recent lower level of Rs 465 is protected, the stock could hold the positive bias. But, if the support is broken, then the downside may enter medium-term bearishness resulting stock price to dwindle towards Rs 420 to Rs 410. CLICK HERE FOR THE CHART