Blog

Currently the gold prices are at record high. This has pulled all the attention for the precious metals on the gold. In fact, for us Indians gold has always been the most attention grabbing out of the precious metals. Nevertheless, it's essential not to overlook other precious metals. Silver, for instance, is currently experiencing a record surge with the prices of ~85,000 per kg. In this blog let us look at the reasons as to why the prices of the silver are moving up.

Silver prices have shown consistent growth throughout 2024, reaching Rs 81,313 per kg on April 8, following a 7.19% increase in 2023. Year-to-date, silver has already gained more than 11%. Several factors contribute to this rise, including strong demand from industrial sectors such as electronics and solar, as well as its status as a safe-haven asset amid economic uncertainties. Geopolitical tensions since 2020 have added a risk premium to the market, with events like the Russia-Ukraine war, Israel-Hamas war and others boosting demand for silver as a secure investment. Additionally, robust industrial demand in areas like electronics, solar energy, and healthcare has further bolstered silver's price.

Silver's unique value lies in its ability to cater to two distinct yet interconnected markets:

Industrial Metal: Silver, an industrial metal renowned for its exceptional thermal and electrical conductivity, holds indispensable importance across various sectors. It serves as a vital component in electronics, including motherboards and electrical contacts, as well as in photovoltaics for solar panels and automobiles, encompassing batteries and electrical wiring. With rapid growth anticipated in these industries, particularly within the renewable energy sector, the demand for silver is expected to soar.

Global silver demand is forecast to reach 1.2 billion ounces in 2024, which, if achieved would be the second-highest level recorded. Stronger industrial offtake is a principal catalyst for the rising global demand for the white metal, and the sector should hit a new annual high this year. In line with the trend in recent years and the renewable energy related initiative, the photovoltaics (P.V.) (used for solar panels) and automotive industries will remain key drivers of growth this year.

Precious Metal: Silver maintains its classification as a precious metal, providing a safeguard against inflation and market instability. Amid economic turbulences, investors frequently seek refuge in precious metals such as silver to protect their assets.

India, the world's largest silver consumer, holds a pivotal position in the international silver market. Various factors contribute to the escalating domestic demand for silver:

Government Initiatives: The Indian government's emphasis on renewable energy and electric vehicles is poised to significantly bolster silver consumption in these sectors. Policies geared towards promoting solar panel installations and the adoption of electric vehicles are anticipated to fuel demand for silver as an industrial metal in the foreseeable future.

Increasing Affluence: As disposable incomes rise in India, there is a notable uptick in demand for silver jewellery and utensils, which have traditionally constituted a substantial portion of silver consumption in the country. With the expansion of the middle class, the demand for silver for ornamental purposes is forecasted to escalate further.

Rising Investment Awareness: Increased awareness among investors about alternative investment avenues such as silver could drive up silver purchases for portfolio diversification. With traditional asset classes like real estate and fixed deposits offering diminished returns, the potential for silver price appreciation may attract a greater number of investors. Additionally, silver serves as a hedge against market volatility.

Multiple Investment Options: Investing in silver has become more accessible in today’s times. While the traditional method involves physically purchasing silver, it entails certain risks. To mitigate these risks, investors can opt for investment avenues like Silver ETFs and Silver Futures, which offer dematerialized formats of investment that are safer and potentially more rewarding than traditional methods. This accessibility has also bolstered domestic investment in silver, thereby increasing its demand.

Stock name: Indraprastha Gas Ltd.

Pattern: Double bottom pattern

Time frame: Daily

Observation:

Since May 2023, the stock has experienced a decline, but it subsequently stabilized and exhibited a double bottom pattern on its daily chart. On April 5, 2024, the stock broke out from this pattern with significant trading volume support, initiating an upward trend. Despite this positive movement, the stock's Relative Strength Index (RSI) indicates it is in the overbought zone. Nevertheless, according to technical analysis, if the current momentum persists, the stock may continue its upward trajectory.

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: G R Infraprojects Ltd.

Pattern: Double bottom pattern and retest

Time frame: Weekly

Observation:

From October 2021, the stock has shown a consistent downward trend. It found stability and created a double bottom pattern on its weekly chart spanning from September 2022 to April 2024. In early April 2024, the stock witnessed a breakout from this pattern, supported by moderate trading volume. Currently, the stock is undergoing a retest of the breakout level. Favourable conditions are indicated by the stock's Relative Strength Index (RSI). According to technical analysis, a potential upward movement may occur if the stock successfully rebounds from this retest.

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:

• Tesla is in talks with Reliance Industries for an Indian EV manufacturing joint venture. Elon Musk confirms Tesla's interest in India, with plans to export vehicles. Maharashtra and Gujarat offer land proposals, signalling Tesla's potential entry into India's EV market.
  
  
• Dixon Technologies, India's top contract manufacturer, intends to acquire a majority stake in Ismartu India, a manufacturing unit of Chinese phone maker Transsion Holdings. Initially purchasing 50.10% for Rs 238.36 crore in cash, Dixon plans to eventually hold around 55% stake, with additional acquisitions projected for FY27. The deal underscores efforts to enhance India's presence in the mobile phone ecosystem, currently dominated by Chinese brands.
• Shyam Metalics to invest Rs 650-750 crore in a new stainless-steel hot rolled coils facility in Sambalpur, Odisha. The plant aims to produce high-quality stainless-steel coils, leveraging captive raw materials like DRI, power, and ferro alloys. Expansion plans also include increasing capacities in Stainless Steel bright bars and wires divisions. The project anticipates generating around 1500 job opportunities.

Stock name: Avenue Supermarts Ltd.

Pattern: Double bottom pattern

Time frame: Weekly

Observation:

Since October 2021, the stock has experienced a downward trend, followed by consolidation and the formation of a double bottom pattern on its weekly chart from November 2022 to March 2024. In March 2024, the stock broke out from this pattern, supported by above-average trading volume and a bullish MACD indicator, resulting in an upward movement. Currently, the stock's Relative Strength Index (RSI) indicates overbought conditions. According to technical analysis, if the stock maintains its current momentum, it could 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: Supreme Industries Ltd.

Pattern: Double bottom pattern and retest

Time frame: Daily

Observation:

Since December 2023, the stock has trended downwards, followed by consolidation and the formation of a double bottom pattern on its daily chart between February and March 2024. Towards the end of March 2024, the stock experienced a breakout from this pattern, backed by above-average trading volume. Subsequently, the stock underwent a retest of the breakout level. Presently, the stock's Relative Strength Index (RSI) indicates favourable conditions. Technical analysis suggests that if the stock rebounds from the retest, it may potentially 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:

• Gland Pharma receives USFDA approval for generic breast cancer drug Eribulin Mesylate Injection, anticipated to be the first in the market with USD 92 million sales in the US. Co-developed with Orbicular Pharmaceutical Technologies Pvt Ltd., the medication highlights Gland Pharma's focus on complex injectables. Shares of Gland Pharma surge by ~5.5% to Rs ~1850 on the BSE following the announcement.
  
  
• REC achieves a record Rs 3.59 lakh crore loan sanction in FY24, with a focus on renewable energy projects. Loan disbursements reach a record high of Rs 1.61 lakh crore, marking a significant increase from the previous fiscal year. REC's loan book grows to Rs 5.09 lakh crore by March 31, 2024, indicating a 17.13% rise from the previous year.
  
  
• Adani TotalEnergies E-Mobility partners with MG Motor India to enhance EV charging infrastructure, planning to install CC2 60 kW DC chargers at MG dealerships. This collaboration aims to promote sustainable mobility and accelerate India's energy transition. Despite a recent sales dip, MG Motor India records a 14% year-on-year sales growth in FY 2023-24, following JSW Group's 33% stake acquisition in 2023.

Stock name: Bata India Ltd.

Pattern: Head and shoulders pattern

Time frame: Monthly

Observation:

The stock trended upwards until its peak in 2021, following which it experienced a decline. From October 2020 to February 2024, a head and shoulders pattern emerged on its monthly chart. February 2024 witnessed a breakout from this pattern, with slightly above-average trading volume. Presently, the stock is on a downward trajectory, accompanied by a low RSI level. Technical analysis suggests that if this current momentum persists, the stock may continue its downward 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: Finolex Industries Ltd.

Pattern: Cup and handle pattern

Time frame: Weekly

Observation:

From October 2021 to April 2024, the stock's weekly chart has formed a cup and handle pattern formation. A breakout from this pattern occurred in early April 2024, backed by higher-than-average trading volume and a positive MACD indicator. Presently, the stock is undergoing a retest of the breakout level following the breakout. The Relative Strength Index (RSI) of the stock is currently at a favourable level. According to technical analysis, a successful bounce back from this retest may potentially propel the stock 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:

• Hyundai and Kia team up with Exide Energy Solutions in India to localize EV battery production, focusing on lithium-iron-phosphate cells. This move supports their expansion plans for the Indian EV market and aims to pioneer domestically produced batteries. The collaboration is crucial for cost competitiveness and aligns with India's carbon neutrality goals.
  
  
• ICICI Bank extends a Rs 2,675 crore debt facility to Tata Steel for three years to repay existing debt. Tata Steel raises Rs 2,700 crore through unsecured fixed-rate bonds at 7.79%, with Niva Bupa Health Insurance investing Rs 25 crore. Both investors are set to receive a bullet payment on March 27, 2027.
  
  
• Voltas surpasses 2-million-unit sales in FY24, credited to consistent demand and robust distribution networks. This marks the first time a company in India's domestic market has achieved this milestone. Despite lower sales in the March quarter, Voltas sees a significant 72% volume growth in AC sales.

With the introduction of new tax regime for individuals in 2020, the govt. gave an option to choose between the old tax regime and the new tax regime. However, the new regime got its real glow when the government introduced various incentives in the 2023 Budget to encourage the adoption of the new regime.

These changes hint that the government is encouraging taxpayers to transition to the new regime and eventually phase out the old one. Currently, the new regime is now the default tax regime, but the old tax regime will continue to exist.

How is the new regime different from the old regime, let us understand:

1. Under the old regime, taxpayers can claim substantial deductions, including those specified in Section 80C, Section 80D, and Section 80TTA of the Income Tax Act. Conversely, individuals choosing the new regime can enjoy reduced tax rates depending on their income bracket, without as many deductions available.
2. Different tax rates:

3. Higher Tax Rebate Limit: Full tax rebate on an income up to ₹7 lakhs has been introduced. Whereas this threshold is ₹5 lakhs under the old tax regime. This means that taxpayers with an income of up to ₹7 lakhs will not have to pay any tax at all under the new tax regime!

Difference Between Old Vs New Tax Regime: Which is Better?

The decision to switch to the new or remain in the old tax regime or which regime is better for you shall be based on the tax savings deductions and exemptions you are eligible for in the old tax regime. To make your decision making easier, below is a table capturing breakeven point for various income levels for a salaried individual below 60 years of age. This can be used to determine which regime to choose.

What deductions and exemptions are allowed under the new tax regime?

Here is a comparison between the deductions and exemptions available under the new and the old tax regime:

To understand more about such interesting concepts, stay tuned.

Until next time !!!

Stock name: Coromandel International Ltd.

Pattern: Double bottom pattern

Time frame: Daily

Observation:

Since December 2023, the stock has experienced a downward trend. Subsequently, it consolidated and established a double bottom pattern on its daily chart. On April 2, 2024, the stock broke out from this pattern, backed by a positive MACD signal. Following the breakout, the stock has exhibited upward momentum, accompanied by high RSI levels. According to technical analysis, if the current momentum persists, further upward movement may be anticipated.

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: Punjab National Bank

Pattern: Rounding bottom pattern

Time frame: Monthly

Observation:

The stock has seen a prolonged downward trajectory before stabilizing and recently showing signs of an upward trend. By January 2024, it had surpassed its 2019 levels, shaping a rounding bottom pattern spanning from April 2019 to January 2024. The breakout in 2024 was accompanied by above average trading volume, and post-breakout, the stock maintained its upward trajectory. Presently, the stock's RSI indicates overbought conditions, potentially signalling a retest. According to technical analysis, sustained breakout momentum may drive the stock 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:

• HUL considers separating its ice-cream business for potential sale, mirroring Unilever's strategy. Amid competition from Magnum, Amul, and Kwality, unique manufacturing and distribution approaches are crucial. The move aims to align with Unilever's focus on improving gross margins in similar segments.
  
  
• Bajaj Auto aims to revolutionize the entry-level motorcycle market by introducing the world's first CNG-run motorcycle, with plans to slash monthly fuel costs in half. Priced at a premium, these bi-fuel motorcycles will challenge the dominance of Hero MotoCorp. Leveraging its 8% share in the mileage-conscious entry-level segment and expertise in CNG three-wheelers, Bajaj aligns with government carbon reduction goals. Initial launch in Maharashtra and Gujarat precedes plans for expansion into other Indian regions and select international markets.
  
  
• RBI Governor Das reminds banks and NBFCs to handle public funds responsibly during MPC meeting. Recent actions against entities like Paytm, IIFL Finance, and JM Financial underscore regulatory scrutiny. S&P warns of higher capital costs due to stringent measures, with RBI emphasizing compliance and customer protection.

Stock name: ITC Ltd.

Pattern: Double top pattern and retest

Time frame: Weekly

Observation:

Following the market's rebound post-COVID, the stock has ascended. Between May 2023 and February 2024, it consolidated, forming a double top pattern on its weekly chart. February 2024 witnessed a breakout from this pattern, supported by significant trading volume and a bearish signal on the MACD indicator. Post breakout the stock has moved in the downward direction. Currently, it's undergoing a retest of the breakout level, with its RSI indicating a low level. Technical analysis suggests that if the retest concludes successfully and gains a downward momentum it may move further downwards.

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: Glaxosmithkline Pharmaceuticals Ltd.

Pattern: Head and shoulders pattern and restest

Time frame: Daily

Observation:

Since December 2023, the stock has surged significantly before stabilizing, forming a head and shoulder pattern on its daily chart. On March 06, 2024, it broke out from this pattern with substantial trading volume, subsequently moving downwards. Currently, it's undergoing a retest of the breakout, with its RSI still indicating low levels. Technical analysis suggests that if the retest is successful and downward momentum ensues, further decline may be expected.

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:

• PFC has disbursed a record interim dividend of ₹2,033 crore to the Indian government for the fiscal year 2023-24. This dividend, distributed in three instalments, marks the highest-ever interim dividend payment by PFC. The payments, totalling ₹3,630 crore, were confirmed by PTI, with the final instalment handed over to RK Singh, Minister of Power and New & Renewable Energy.
  
  
• Amit Kalyani, son of Bharat Forge's Chairman, is appointed Vice-Chairman and Joint MD. The decision was made during a board meeting on April 3, 2024. Kalyani's re-appointment as a whole-time director is for five years, starting from May 11, 2024.
• Vi plans to raise ₹20,000 crore through equity, with a board meeting on April 6 to discuss the preferential share issue. Shareholders' approval is secured, aiming to complete the fundraising by June, with promoters contributing around ₹2,000 crore. The move attracts interest from UK institutional investors, while Vi's 5G rollout investments are crucial to compete with rivals like Airtel and Jio.

Stock name: Orient Electric Ltd.

Pattern: Double bottom pattern and retest

Time frame: Daily

Observation:

Since January 2024, the stock has been on a downward trend. Between February and April 2024, it formed a double bottom pattern on its daily chart. A breakout from this pattern occurred on April 02, 2024, accompanied by substantial trading volume and a positive MACD indicator signal. Today, the stock is undergoing a strong retest of the breakout, with its RSI levels positioned favourably. According to technical analysis, if the stock maintain its breakout momentum, it 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.

Stock name: Tata Communications Ltd.

Pattern: Cup and handle pattern

Time frame: Daily

Observation:

The stock's general trajectory has been upward, notably from September 2023 to April 2024, during which it stabilized and formed a cup and handle pattern on its daily chart. A breakout from this pattern occurred on April 01, 2024, backed by average trading volume and a positive signal on its MACD indicator. Subsequently, the stock has continued its ascent. Technical analysis suggests that if the breakout momentum persists, the stock may advance 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 Green Energy becomes India's first 'das hazari' in renewables, surpassing 10,000 MW portfolio with a recent 2,000 MW solar commission at Khavda. Operating now at 10,934 MW, the company is aiming for 45 GW by 2030, powering 5.8 million homes and reducing 21 million tonnes of CO2 annually. Chairman Gautam Adani plans a groundbreaking 30,000 MW project in Khavda, redefining global standards in renewable energy.
  
  
• UltraTech Cement, part of Aditya Birla Group, adds 5.4 mtpa capacity with new units in Chhattisgarh and Tamil Nadu, totalling 151.6 mtpa, surpassing US and Europe capacities. Chairman Kumar Mangalam Birla highlights rapid expansion, symbolizing India's global presence. Managing Director KC Jhanwar underscores commitment to sustainable growth with ongoing expansions and substantial capex.
  
  
• Reliance Jio's 5G user base reportedly surpasses 100 million by March's end, with Bharti Airtel trailing closely at around 75 million. Ookla, a network analytics firm, acknowledges Jio and Airtel as pivotal players driving 5G adoption in India, commending their rapid nationwide expansion efforts.

Stock name: HDFC Asset Management Company Ltd.

Pattern: Rounding bottom pattern and retest

Time frame: Weekly

Observation:

A rounding bottom pattern has emerged on the weekly chart of the stock spanning from November 2019 to February 2024. In February 2024, the stock experienced a breakout from this pattern, backed by average trading volume. Currently, the stock is undergoing a retest phase accompanied by a notably high RSI level. According to technical analysis, a successful rebound from this retest may propel the stock in an upward trajectory.

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: BSE Ltd.

Pattern: Flag and pole pattern

Time frame: Weekly

Observation:

Between September and December 2023, the stock witnessed a significant surge followed by consolidation, forming a flag and pole pattern on its weekly chart until March 2024. Towards the end of March 2024, the stock broke out from this pattern, backed by slightly above-average trading volume. Subsequently, it has been trending upwards. Technical analysis suggests that if the stock sustains its breakout momentum, it may continue its upward trajectory.

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:

• IREDA achieved its highest-ever annual loan sanctions and disbursements in FY23-24, totalling Rs 37,354 crore and Rs 25,089 crore, respectively, marking a 26.71% growth in its loan book. Notably, in Q4 FY23-24, loan sanctions more than doubled to Rs 23,796 crore, and disbursements rose by 13.98% to Rs 12,869 crore.
  
  
• Fincare Small Finance Bank merged with AU Small Finance Bank. The all-stock merger, approved by RBI on March 4, 2024, enhances AU SFB's presence in South India, bolstering its distribution network and customer base. With about 1 crore customers and a network of 2,350 touchpoints across 25 states, the merger aims for seamless integration and exceptional service delivery. Both banks have established a dedicated task force to ensure a smooth transition.
  
  
• Aditya Birla Fashion and Retail Ltd. (ABFRL) announced plans to consider demerging its Madura Fashion & Lifestyle business into a separate listed company. The decision, made during a Board of Directors meeting, aims to assess the strategic move's potential benefits. ABFRL intends to split its retail business to unlock valuation, focus on each entity, and raise fresh capital. The proposed demerger seeks to address stagnant valuation and reverse losses witnessed during FY24 due to increased investment in newer niche ventures.