Is PVR’s Stock Ready to Deliver Mega Blockbuster Returns on D-Street?

Once a superstar stock of D-Street, it turned its role to become a struggler as the stock witnessed a correction of nearly 32% from December 2023 highs. It could be attributed to multiple reasons which include the average collections of Bollywood and Hollywood films have dropped 50% YTD according to Bollywood Hungama.

PVR announced the opening of a 14-screen megaplex at Phoenix Mall of Asia in the city of Bengaluru. The cinema is equipped with the best-in-class theatrical technology to offer an immersive and enhanced cinematic experience, including 4K laser projectors, advanced Dolby Atmos surround sound, and Volfoni 3D screen.

Technical Analysis: Potential Reversal Pattern

On Thursday, the stock was trading higher by 3.4%, and the total traded volume on the NSE exchange has so far covered 80% of the volume seen in the prior trading session. Interestingly, with Thursday’s up-move, the stock is on the verge of witnessing a breakout of a reversal pattern – the Inverted Head and Shoulders pattern.

Understanding the Inverted Head and Shoulders Pattern

This pattern is formed after a downtrend and consists of three consecutive troughs, with the middle trough being the lowest (also known as the head) and the other two troughs known as shoulders, with the left one known as the left shoulder and the right one known as the right shoulder. It’s not a picture-perfect or textbook inverted head and shoulder pattern, but it ticks most of the criteria. However, volume needs to pick up further from here on, and the price needs to sustain above the trendline.

Oscillator Analysis: Positive Indicators

Among the oscillators, the daily 14 periods RSI has generated a buy signal, thus validating a positive bias. The daily MACD is seen sustaining above its nine-period average, thus validating a positive bias in the stock.

The stock has delivered negative returns of 13.82% on a YTD basis, and in the last one year, it has dropped by 7.61%.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.