Sun TV: Need To Sustain Above 375-390 Zone For More Rally

Time & price action suggests that sustaining above 375-390 zone, Sun TV may further rally up to 415-436 zone; Otherwise, it will face selling pressure and below 358 may fall again 343-314 area in the near term.

Trading Idea: Sun TV

CMP: 369

Either sell below 373 or on rise around 375-385;

TGT1: 358-343*-324-314 (1-3M)

TGT2: 300-270-255*-235 (6-12M)

TSL> 390

Note: Consecutive Closing (3 days) above 390 for any reason, Sun TV may further rally up to 415-436 & 460-485 in the near to long term (alternative bullish case scenario)

Apart from digitization, ad revenue growth, fierce competition and quality of programmes/channels issues, ongoing legal hurdles (Aircel-Maxis Telecom & other cases) may continue drag the stock. 

Thus political issues between Maran brothers & the present Govt may continue dominate the news flow for the stock.

As par BG metrics and current market scenario:

TTM EPS: 21.17 (FY:15/ACTUAL))

FWD EPS: 21.40-23-26.15 (FY:16-18/PROJECTED) 

AVG.PE: 15

Current median value of Sun TV may be around: 335 (FY:15)

Projected fair valuations might be around: 340-350-375 (FY:16-18)

SCRIP	EPS(TTM)	BV(Act)	P/E(AVG)	Low	High	Median	200-DEMA	10-DEMA
SUNTV	21.17	85.76	15	339.23	330.69	334.96	362.38	344.37

SUNTV

21.4

92.25

15

341.06

332.48

336.77

362.38

344.37

SUNTV

23

99.15

15

353.58

344.68

349.13

362.38

344.37

SUNTV

26.15

106.75

15

377.02

367.53

372.28

362.38

344.37

Analytical Charts: