Zee Entertainment shares rebound after biggest single-day drop on record

Shares of Zee Entertainment are up 8% in early trading on Wednesday after reporting the biggest single-day drop on record on Tuesday.

The stock had declined over 30% after Sony Pictures terminated the potential $10 billion merger agreement, which led to multiple brokerages cutting their estimates and price targets on Zee.

CNBC-TV18 this morning has also accessed a letter written by Zee promoter Subhash Chandra to Finance Minister Nirmala Sitharaman, seeking her intervention in protecting the interest of minority shareholders.

Over 22 crore shares of Zee Entertainment were traded on the NSE on Tuesday, of which 41%, or 9.57 crore shares were marked for delivery. The number of shares marked for delivery on Tuesday are more than the combined volume traded on Friday and Saturday.

Shares of Zee Entertainment are also out of the F&O ban in today's session, which means new positions can be created in the stock. Another reason for the potential rebound could be the stock being in "oversold" territory on the charts. As of closing on Tuesday, Zee's Relative Strength Index (RSI) stood at 18, which was the lowest level since February 2022, when it fell to 16. A reading below 30 on the RSI means that the stock is in "Oversold" territory.