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Stock name: Graphite India Ltd.

Pattern: Head and shoulders pattern

Time frame: Daily

Observation:

Since March 2023, the stock has experienced an upward trend. However, a head and shoulders pattern has formed on the daily chart between January and July 2024. Currently the stock has yet to breakout from the pattern and therefore, the breakout line from this pattern could serve as support. The stock's RSI is currently very low. According to technical analysis, if the stock falls below the breakout line, it may decline further.

You may add this to your watch list to understand further price action.

Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

Stock name: MphasiS Ltd.

Pattern: Cup and handle pattern

Time frame: Weekly

Observation:

The stock has formed a cup and handle pattern on its weekly chart from April 2022 to July 2024. Currently, it is positioned above the breakout line on the last day of the weekly candle. A recent bullish MACD indicator and a favourable RSI level support its potential. If the stock closes above the breakout line this week, technical analysis suggests it may continue to rise.

You may add this to your watch list to understand further price action.

Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

News for the day:

• HDFC Bank's merger with HDFC Limited has brought significant benefits, says Chairman Atanu Chakraborty. The integration has expanded home loan offerings and strengthened risk management. Both HDFC Bank and the Indian economy showed resilience amid global uncertainties, with India's GDP growing 8.2% last year and projected at 7.2% this year. The merger leverages the combined strengths of both entities, enhancing customer services and business operations.
  
  
• Bharti Airtel has secured a multi-year contract with the Central Board of Direct Taxes (CBDT) to be the network and connectivity partner for the income tax department. The partnership includes dual connectivity using Software Defined Networks for WAN, Secure LAN, and other solutions under the Taxnet-2.0 program, aiming to modernize tax systems. Financial details were not disclosed. The contract was formalized at a signing event attended by Airtel Chairman Sunil Mittal and CBDT Chairman Ravi Agarwal.
  
  
• UK-based Vedanta Resources, parent company of India's Vedanta, has paid $245.75 million to revive operations at Zambia's Konkola Copper Mines (KCM). This payment is part of a deal to regain control of the mines, which were seized by the Zambian government in 2019 due to alleged underinvestment. Vedanta regained control in November 2023 after a five-year legal battle. The company plans to raise an additional $1 billion to fully revive KCM's operations and develop the Konkola deep mining project. The Zambian government retains a 20% stake in KCM.

Stock name: Motilal Oswal Financial Services Ltd.

Pattern: Double top pattern

Time frame: Daily

Observation:

The stock has experienced significant upward movement since March 2023. Recently, it formed a double top pattern on its daily chart. Currently the stock is yet to breakout from this pattern therefore this line is acting as a support line. Presently, the stock's RSI level is very low. According to technical analysis, if the stock moves downward past the breakout line, it may continue to decline further.

You may add this to your watch list to understand further price action.

Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

Stock name: Lupin Ltd.

Pattern: Flag and pole pattern

Time frame: Weekly

Observation:

The stock has been on an upward trend since April 2023 and consolidated from March to July 2024, forming a flag and pole pattern on its weekly chart. It broke out of this pattern in early July 2024, supported by high trading volume and a bullish MACD indicator. Technical analysis suggests that if the breakout momentum continues, the stock may move further upwards.

You may add this to your watch list to understand further price action.

Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

News for the day:

• Mazagon Dock Shipbuilders (MDL) and Garden Reach Shipbuilders (GRSE) are frontrunners for the Defence Ministry's ₹70,000 crore warship order under Project 17B. This order will enhance MDL's Kalvari class submarines and Project 15B destroyers, and GRSE's patrol vessels and exports. The two yards, already working on Nilgiri class frigates under Project 17A, are expected to split the order for faster delivery. The advanced stealth frigates will include Brahmos missiles, anti-submarine weapons, and indigenous electronic warfare systems.
• The Asian Development Bank (ADB) has approved a $240.5 million loan to support rooftop solar systems in India, focusing on residential installations. The loan will be distributed through the State Bank of India (SBI) and the National Bank for Agriculture and Rural Development (NABARD). This initiative aligns with India's goal to achieve 50% of its power from non-fossil fuel sources by 2030 and supports the Prime Minister's Surya Ghar program for rooftop solar adoption.
  
  
• DLF is expanding its housing and commercial property business into Mumbai and Goa while continuing projects in Delhi-NCR, according to Chairman Rajiv Singh. The company saw record sales of ₹15,058 crore in FY 2022-23 and ₹14,778 crore in FY 2023-24, targeting ₹17,000 crore for FY 2024-25. The commercial segment is performing well with high occupancy rates.

Stock name: EPL Ltd.

Pattern: Double bottom pattern

Time frame: Monthly

Observation:

The stock experienced a downward movement starting in August 2020 and later formed a double bottom pattern on its monthly chart. In July 2021, it saw a rapid upward movement and is now above the breakout line, although the breakout isn't confirmed until the candle completes. The stock has shown a bullish indicator on its MACD chart with high trading volume, and its RSI level is in a good zone. According to technical analysis, if the stock maintains its current momentum, it may continue to move upwards.

You may add this to your watch list to understand further price action.

Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

Stock name: Blue Dart Express Ltd.

Pattern: Triple bottom pattern

Time frame: Weekly

Observation:

The stock experienced a downward movement from October 2022 and later formed a triple bottom pattern on its weekly chart. It broke out from this pattern in June 2024 with above-average trading volume and has since moved continuously upward. However, the RSI is now in the overbought zone, indicating a possible retest. According to technical analysis, if the stock maintains its current momentum, it may continue to rise further.

You may add this to your watch list to understand further price action.

Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

News for the day:

• Adani Group expects its ports business to double in volume within five years, driven by strong growth in India's export and import demand. The ports segment saw revenue increase to Rs 20,972 crore in FY24 from Rs 17,304 crore the previous year. Karan Adani, managing director of Adani Ports and SEZ, noted that the logistics segment also grew, but at a slower pace. The company aims to handle 1 billion tonnes of cargo by 2030, with 90% from Indian ports and 10% from international operations. Adani Ports plans for organic growth at existing ports and will consider acquisitions and PPP projects for expansion.
  
  
• Varun Beverages Ltd (VBL), PepsiCo's bottling franchise partner, plans to invest $7 million to establish manufacturing units in Zimbabwe and Zambia. These units will produce, distribute, and sell Simba Munchiez snacks in the respective territories. VBL's subsidiaries, VFZ Varun Foods (Zimbabwe) and Varun Beverages (Zambia), will handle the operations. The investment aims to create an annual capacity of 5,000 MT for manufacturing Simba Munchiez at each location.
  
  
• Ashok Leyland has secured a Rs 981.45 crore order from Maharashtra State Road Transport Corporation (MSRTC) for 2,104 Viking buses, compliant with BSVI OBD II standards. The order will be fulfilled between August 2024 and August 2025, further strengthening Ashok Leyland's market position. This deal makes Ashok Leyland the dominant bus supplier in MSRTC's fleet of over 15,000 buses. Shenu Agarwal, Managing Director & CEO, highlighted the company's commitment to efficient and advanced public transportation solutions.

Stock name: Usha Martin Ltd.

Pattern: Double top pattern

Time frame: Daily

Observation:

Since March 2024, the stock has experienced a rapid upward movement. Recently, from June 2024, it formed a double top pattern on its daily chart but has not yet broken out. The breakout line of this pattern may act as a support line. The RSI level has dropped below 50, indicating weakening momentum. If the stock breaks down from the pattern with strong momentum, it may decline further according to technical analysis.

You may add this to your watch list to understand further price action.

Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

Stock name: Clean Science and Technology Ltd.

Pattern: Cup and handle pattern and retest

Time frame: Daily

Observation:

The stock has been following a sideways trend. From February 2024 to July 2024, it formed a cup and handle pattern on its daily chart and broke out from the pattern on July 2, 2024, supported by huge trading volume. After the breakout, the stock experienced a strong retest. Currently, the RSI level is still above 50. According to technical analysis, if the stock rebounds from the retest, it may continue to move upwards.

You may add this to your watch list to understand further price action.

Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

News for the day:

• State Bank of India (SBI) has raised its MCLR by 5 to 10 basis points for tenures from one month to three years, effective July 15. The new rates range from 8.35% for one month to 9% for three years. This is the second consecutive hike after a 10-basis point increase in June. MCLR primarily impacts corporate loans, while retail loans are generally linked to the unchanged RBI repo rate since February 2023.
  
  
• Tata Power has invested Rs 4,245 crore in infrastructure expansion and network upgrades in Odisha over the past 3-4 years. Operating four joint ventures with the Odisha government, they serve over 9 million customers. The investment includes Rs 1,232 crore through government-backed schemes, which funded the laying of 33 KV lines and the addition of 30,230 distribution transformers. These upgrades have improved power reliability and reduced transmission losses, with urban areas now receiving an average of 23.68 hours of power daily.
  
  
• The Federation of Pharma Entrepreneurs (FoPE) has requested a 10-year exemption from price controls for patented and low-cost drugs priced up to ₹5 per unit. They also seek adjustments to the Drug Price Control Order (DPCO) and a reduction in the 12% GST due to rising ingredient costs. Supported by the Indian Pharmaceutical Alliance (IPA), FoPE highlighted that current price controls are driving research overseas and causing financial strains.

This form of organisation i,e The Hindu Undivided Family (HUF) is something which is not very commonly found across the globe and portrays the traditional Indian cultural values of the joint system of family.

Now, if we consider HUF only from an Income tax lens, it is considered as a separate entity and has its own PAN. Today, our focus is on understanding the intricacies of the Hindu Undivided Family (HUF) and its tax benefits and how it can provide significant financial advantages for eligible families. This blog will delve into the concept of HUF, its formation, and the myriad of tax benefits it offers under the Indian Income Tax Act.

What is a Hindu Undivided Family (HUF)?

A Hindu Undivided Family (HUF) is a distinct legal entity created under Hindu law, comprising individuals who are direct descendants of a common ancestor. This includes their spouses and unmarried daughters. The term "Hindu" in this context also extends to Buddhists, Jains, and Sikhs.

Key Features of HUF as per Income Tax perspective:

Formation:

An HUF is formed automatically under the Hindu Succession Act at the time of marriage. However, under Income tax, you can form a HUF only when you are married and have a kid (son / daughter).

You should prepare a deed on stamp paper declaring the formation of the HUF. It should have all the details, including the name of karta, co-parceners, address and source of funds in the corpus.

Once the declaration deed is made, the karta should apply for a permanent account number (PAN) for the HUF.

Karta:

The senior-most male member of the family, known as the 'Karta,' manages the HUF.

Members:

All other family members are known as 'coparceners,' who have the right to demand partition of the HUF.

Assets: HUF can own assets including ancestral property, gifts received by family members, and property acquired from the joint family income.

Tax Benefits of an HUF

HUFs enjoy various tax benefits under the Income Tax Act, making them an attractive option for families looking to optimize their tax liabilities.

• Separate Tax Entity
  • An HUF is considered a separate entity for tax purposes, distinct from its members. This means the HUF can file its own tax returns and claim deductions independently. This will also mean that, it will get benefit of the basic exemption limit from tax which is enjoyed by individuals

How can you plan to save taxes via use of HUF?

1. Say, you invest in the equity market in your own name, now if you gift money into the HUF and invest that same money into equity markets via HUF, you will essentially get INR 250,000 worth of LTCG tax free (Additional 150,000 from what you get as an individual)
2. Also, the dividend which you will receive will also be taxed in the hands of HUF and most probably at a lower rate of tax

• Wealth Management and Succession

HUFs provide a structured way to manage family wealth and ensure smooth succession. By holding assets in the name of the HUF, families can avoid disputes and ensure orderly distribution of wealth across generations.

• Responsibilities and Compliance

While HUFs offer significant benefits, they also come with responsibilities:

1. Maintain Proper Records: Accurate records of HUF transactions and income are essential.
2. File Annual Returns: HUFs must file their income tax returns annually, just like individuals.
3. Compliance: Adherence to relevant laws concerning investments, property transactions, and income reporting is mandatory.

Conclusion

The Hindu Undivided Family (HUF) structure provides substantial tax benefits and effective wealth management solutions. By understanding the provisions related to HUFs under the Income Tax Act, families can enhance their financial planning and achieve considerable tax savings. However, it is crucial to comply with legal requirements and consult with a tax advisor to maximize the benefits and ensure proper management of the HUF. While a member of the HUF is transacting with the HUF, he needs to take care of the clubbing provisions which could be attracted.

Incorporating an HUF into your financial strategy can be a prudent step towards optimized tax savings and structured wealth management, offering long-term benefits for the entire family.

FAQs

Q: What is the income tax rate for HUF?

The current income tax rates for HUFs, whether resident or non-resident, are as follows:

Q: What is the tax exemption limit for HUF?

The tax exemption limit for HUFs is up to Rs 2.5 lakh (in the old tax regime) and up to Rs 3 lakh (in the new tax regime).

Post Script - The rebate available for individuals is not available for HUF, meaning that when you say that an individual filing his return under the new tax regime will have no tax implication if his income is upto INR 7 lakhs, in case of HUF that amount will only be INR 3 lakhs.

Stock name: AIA Engineering Ltd.

Pattern: Double bottom pattern retest

Time frame: Daily

Observation:

Since February, the stock experienced a sudden decline, then stabilized, forming a double bottom pattern on its daily chart. It broke out from the pattern on June 18, 2024, but a high RSI value caused a retest of the breakout level. The stock successfully rebounded and is now moving upwards. According to technical analysis, if it maintains the current momentum, it may continue to rise.

You may add this to your watch list to understand further price action.

Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

Stock name: Oil & Natural Gas Corporation Ltd.

Pattern: Rounding bottom pattern

Time frame: Monthly

Observation:

The stock has formed a rounding bottom pattern on its monthly chart since 2014 and is currently above the breakout line. This month's candle is still forming, making it crucial to see if the stock can sustain its breakout position upon completion. The RSI indicates an overbought zone, which might cause a retest at the breakout level. If the stock maintains momentum and trading volume, technical analysis suggests it may move higher.

You may add this to your watch list to understand further price action.

Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

News for the day:

• REC Limited has raised 31.96 billion Japanese Yen ($200 million) through a 5-year green loan from Deutsche Bank's Gift City branch to finance green projects in India. This transaction aligns with REC's commitment to green energy financing. It marks one of the first yen-denominated green loans by Deutsche Bank's Gift City branch.
  
  
• The Indian car industry’s shift to an all-electric future may include hybrids, as Uttar Pradesh waives registration fees for hybrid and plug-in vehicles. Hybrid car sales are increasing, closing the gap with EVs. Automakers are divided: Maruti Suzuki and Toyota support tax cuts for hybrids, while Tata Motors and Hyundai oppose them, favouring direct EV incentives. This debate will influence India's green mobility path.
  
  
• IRCTC, DMRC, and CRIS have launched the 'One India - One Ticket' initiative to improve travel convenience for Main Line Railway and Metro passengers in Delhi NCR. This initiative allows passengers to book Delhi Metro QR Code-based tickets through the IRCTC website and mobile app up to 120 days in advance, synchronized with Indian Railways' reservation system. The tickets are valid for four days, enhancing flexibility and integration in travel planning. This collaboration aims to streamline the travel experience and reduce wait times for passengers at metro stations.

Stock name: PVR INOX Ltd.

Pattern: Double bottom pattern retest

Time frame: Daily

Observation:

Since August 2023, the stock has been declining but recently stabilized, forming a double bottom pattern on its daily chart. On June 21, 2024, the stock broke out from this pattern with significant trading volume. After the breakout, the stock moved upwards but is now retesting the breakout level. The RSI remains favourable. According to technical analysis, if the stock can rebound with strong momentum, it may continue to move upward.

You may add this to your watch list to understand further price action.

Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

Stock name: Welspun Living Ltd.

Pattern: Cup and handle pattern

Time frame: Weekly

Observation:

From October 2021 to July 2024, the stock has formed a cup and handle pattern on its weekly chart. It is currently facing resistance at the breakout line of the pattern. However, a positive MACD signal has just been registered, and the RSI level is in the favourable zone. According to technical analysis, if the stock can break out from the pattern with strong momentum, it may move further upward.

You may add this to your watch list to understand further price action.

Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

News for the day:

• S tate-owned ONGC will invest Rs 2 lakh crore to achieve net-zero carbon emissions by 2038. The funds will focus on renewable energy projects, green hydrogen plants, and eliminating gas flaring. By 2030, ONGC will allocate Rs 97,000 crore for 5 GW of renewable energy, with further investments planned through 2038. The company aims to offset 9 million tonnes of carbon emissions while boosting hydrocarbon production.
• Larsen & Toubro (L&T) has secured a significant order from Hindustan Shipyard Ltd, valued between Rs 1,000 crore and Rs 2,500 crore, for the construction of part of two Fleet Support Ships (FSS) for the Indian Navy. These ships, essential for logistical support, will be built at L&T's advanced shipyard in Kattupalli, near Chennai. The order is part of a contract signed last year for five FSS, which are among the largest vessels in the Indian Naval fleet.
  
  
• Indian Railways plans to manufacture 10,000 non-AC coaches over the next two fiscal years, increasing their count by 22%. This initiative aims to enhance passenger facilities, with specific targets for general coaches, sleeper coaches, SLR coaches, parcel vans, and pantry cars in each fiscal year.

Stock name: Alkyl Amines Chemicals Ltd.

Pattern: Double bottom pattern

Time frame: Daily

Observation:

The stock has been declining since July 2021. From March to July 2024, it formed a double bottom pattern on its daily chart but failed to break out. The previous high of the pattern is acting as a resistance line, causing a downward movement after reaching it. The stock's RSI levels remain favourable. According to technical analysis, a breakout with strong momentum might lead to further upward movement.

You may add this to your watch list to understand further price action.

Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

Stock name: Castrol India Ltd.

Pattern: Rounding bottom pattern

Time frame: Monthly

Observation:

Since December 2014, the stock has been declining, but it recovered in 2023 and is now back to its 2014 levels, forming a rounding bottom pattern on the monthly chart. Currently, the stock is still below the 2014 levels and hasn't broken out from the pattern, making this a potential resistance level. The stock's RSI is very high, suggesting possible consolidation or correction. Technical analysis indicates that a breakout with strong momentum might lead to further upward movement.

You may add this to your watch list to understand further price action.

Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

News for the day:

• Inox Wind has secured a 200 MW wind energy project order from a renewable C&I power producer, to be implemented in Gujarat and Rajasthan. The project will feature Inox Wind's latest 3 MW Wind Turbine Generators and involve turnkey execution along with multi-year operations and maintenance services. CEO Kailash Tarachandani expressed confidence in significant growth for FY25 and beyond.
  
  
• The Uttar Pradesh government has waived the registration tax on strong hybrid cars, benefiting manufacturers like Maruti Suzuki, Toyota, and Honda. Customers can save up to Rs 3.5 lakh on models such as the Maruti Grand Vitara, Toyota Hyryder, Innova Hycross, and Honda City hybrid. This policy, implemented through a July circular, aims to promote green vehicles. The state had already announced a three-year tax exemption for EVs last year, with a five-year benefit for in-state manufactured EVs. Despite the waiver, the low sales of hybrid vehicles mean the impact on the state exchequer will be minimal.
  
  
• Larsen & Toubro (L&T) announced the acquisition of Bengaluru-based SiliConch Systems for Rs 183 crore to strengthen its fabless semiconductor business. L&T Semiconductor Technologies Ltd. will finalize the deal by September, pending customary conditions. The acquisition includes an upfront payment of Rs 133 crore and a deferred Rs 50 crore over four years, contingent on meeting certain targets. SiliConch, established in 2016, specializes in semiconductor IP and IC design, with 30 granted patents and primarily serves OEMs and fabless IC companies in the US.

Stock name: Cholamandalam Financial Holdings Ltd.

Pattern: Flag and pole pattern

Time frame: Weekly

Observation:

Between March and September 2023, the stock experienced a rapid rise. Since September, it has consolidated, forming a flag and pole pattern on the weekly chart. In June 2024, the stock broke out of this pattern with above-average trading volume and a bullish MACD indicator. Following the breakout, the stock continued to move rapidly upwards. Technical indicators suggest that if the current momentum is sustained, the stock may climb even higher.

You may add this to your watch list to understand further price action.

Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

Stock name: Kfin Technologies Ltd.

Pattern: Double bottom pattern and retest

Time frame: Daily

Observation:

Since May 2024, the stock has declined, forming a double bottom pattern on the daily chart. On July 2, 2024, it broke out of this pattern with above-average trading volume and a positive MACD breakout. After the breakout, the stock moved slightly upward but immediately faced a retest. Currently, the RSI is in a favourable zone. According to technical analysis, if the stock rebounds from the retest, it may continue to rise.

You may add this to your watch list to understand further price action.

Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

News for the day:

• India is likely to amend its EV policy to benefit legacy car manufacturers that have already invested in the country, as Tesla has not committed to building a factory. The current policy supports only new investments for high-end EV manufacturing. The government may allow investments in plants producing both internal combustion and electric vehicles to qualify for incentives. Automakers have raised concerns that the policy should also consider existing investments. Consultations are ongoing to make the Scheme for Manufacturing of Electric Cars (SMEC) more attractive to traditional companies.
  
  
• Bajaj Auto is set to disrupt the market with its CNG-powered Freedom 125 motorcycle, priced between Rs 95,000 and Rs 110,000. It aims to challenge Hero Honda by reducing operating costs by up to 50% compared to petrol bikes. Rajiv Bajaj sees this as "returning the favour" to Hero Honda, which transformed the market 25 years ago. Targeting the entry-level segment, Bajaj plans to produce 10,000 units monthly, increasing to 40,000-50,000 by FY25, with initial focus on the domestic market.
  
  
• PC Jeweller Ltd announced that Punjab National Bank has approved a one-time settlement (OTS) for its outstanding dues. This approval was disclosed in a regulatory filing, noting that PNB, the third largest bank in the consortium, has agreed to the company's OTS proposal. The settlement includes cash and equity components, and details about the release of securities and properties. PC Jeweller, which operates 60 showrooms across 44 cities in India, is refocusing on brand presence and marketing. The company is also revamping business operations, including new jewellery collections and franchisee business optimization.