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Stock name: Amara Raja Energy & Mobility Ltd.

Pattern: Double top pattern

Time frame: Daily

Observation:

Since March 2024, the stock has seen significant upward movement. Recently, it stabilized and formed a double top pattern on its daily chart, breaking out from this pattern on August 5, 2024. Currently, the stock is moving downward, and its RSI level is low. According to technical analysis, if the breakout momentum continues, the stock 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: Brigade Enterprises Ltd.

Pattern: Head and shoulders pattern

Time frame: Daily

Observation:

The stock has been trending upwards since March 2024. Recently, it formed a head and shoulders pattern on its daily chart and broke out from this pattern on August 5, 2024. Despite recovering at the opening on August 6, it still declined and closed below the breakout line of the pattern. The RSI level is currently low. According to technical analysis, if the breakout momentum continues, the stock 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.

News for the day:

• Real estate leaders have praised Finance Minister Nirmala Sitharaman's proposed amendment to the Finance Bill, offering significant relief on capital gains tax for property transactions. The amendment allows taxpayers to choose between a 12.5% tax rate without indexation or a 20% rate with indexation for properties acquired before July 23, 2024. This move is expected to boost investment and sales in the real estate sector. Shares of real estate companies surged, with the Nifty Realty index rising around 1.5%. Similar provisions apply to unlisted equity transactions, now taxed at 10% long-term capital gains.
  
  
• Mahindra & Mahindra plans to boost its services business, focusing on Mahindra Finance and Tech Mahindra. Services currently contribute 30-40% to profits and could exceed 50% in the next 5-7 years. The company aims for aggressive growth in real estate, hospitality, and logistics, having already improved margins and diversified products. Mahindra Finance is enhancing asset quality, while Tech Mahindra focuses on operational execution. The group's portfolio value has grown from $800 million in FY20 to $4.2 billion in March 2024.
  
  
• Tata Power Company plans to acquire a 40% stake in Khorlochhu Hydro Power Limited for Rs 830 crore. This acquisition, done in tranches over six months, is part of a Share Purchase Agreement with the current shareholders. The aim is to develop the 600 MW Khorlochhu Hydropower Project in Bhutan with a total investment of Rs 6,900 crore. This move will support Tata Power's transition to clean energy, making KHPL an associate company and related party post-acquisition.

Stock name: Birlasoft Ltd.

Pattern: Double top pattern

Time frame: Weekly

Observation:

Since April 2023, the stock has been trending upward before stabilizing and forming a double top pattern on its weekly chart. Currently, it is close to the breakout line but hasn't yet registered a breakout. This breakout line could act as a support level before a potential breach. Recently, the stock has shown a bearish indicator on its weekly MACD and has a low RSI level. According to technical analysis, if the stock experiences significant downward movement and breaches the breakout line with momentum, it may face further decline.

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: JSW Infrastructure Ltd.

Pattern: Double top pattern

Time frame: Daily

Observation:

Since its market listing, the stock has trended upward. From June to August 2024, it formed a double top pattern on the daily chart. On August 5, 2024, amid a market downturn, the stock closed below the breakout line. However, it has since recovered and is moving above this line again, requiring further confirmation to determine a true breakout. Currently, the stock's RSI is low, and technical analysis suggests that a strong breakout from the pattern may lead to a further decline.

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) is enhancing its wealth management business by deploying 2,000 relationship managers to attract affluent clients and smaller companies. Chairman Dinesh Khara emphasized the bank's extensive product offerings and distribution network. Despite competition from global and domestic firms, SBI aims to capture a larger share of India's growing wealth market. For the quarter ending June 30, 2024, SBI reported a net profit of Rs 17,035 crore, slightly up from the previous year and exceeding market expectations.
• India has signed Bilateral Air Services Agreements (ASAs) with 116 countries to enhance global connectivity and promote economic and tourism growth. These agreements enable international flights between India and these nations. In a recent Rajya Sabha session, Minister of State Murlidhar Mohol clarified that the ASAs designate specific cities, not states, as points of call to facilitate better management and operational efficiency. Cities like Delhi, Mumbai, Bangalore, and others are included under these agreements, ensuring greater flexibility and coverage for airlines.
  
  
• State-owned telecom company MTNL has defaulted on bank loan payments totalling Rs 422.05 crore, comprising Rs 328.75 crore in principal and Rs 93.3 crore in interest for June and July. MTNL has sought Rs 1,151.65 crore from the government for interest on sovereign guarantee bonds and Rs 3,668.97 crore for principal repayment. The company raised Rs 5,573.52 crore in debt from various banks and has total borrowings of Rs 7,873.52 crore, with overall debt standing at Rs 31,944.51 crore.

Stock name: Vardhman Textiles Ltd.

Pattern: Double top pattern

Time frame: Daily

Observation:

Since June 2022, the stock has been on an upward trend. In July 2024, a double top pattern formed on its daily chart. Today, the stock sharply declined and is now below the breakout line. The stock recently showed a bearish MACD indicator, and its RSI fell below 50. According to technical analysis, if the stock closes below the breakout line, it could signal a breakout from the pattern, and it may lead to further decline.

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: IRB Infrastructure Developers Ltd.

Pattern: Head and shoulders pattern

Time frame: Daily

Observation:

The stock has been on a long-term upward trend but recently stabilized, forming a head and shoulders pattern from April to July 2024. On August 1, 2024, it broke out from this pattern. Currently, the stock is moving downward with low RSI levels. Technical analysis suggests that if this momentum continues, the stock may fall 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:

• Gautam Adani plans to retire at 70 and transfer control of Adani Group to his sons and their cousins by the early 2030s, he told Bloomberg News. His heirs—Karan, Jeet, Pranav, and Sagar—will equally benefit from the family trust. A confidential agreement will govern the transition. Adani emphasized the importance of a gradual and systematic succession. This news comes as Adani Enterprises' first-quarter profit more than doubled due to investments in renewable energy.
  
  
• Creditors have voted to liquidate Go First Airlines after failing to find a buyer over the past year. A liquidation plea was filed with the Delhi NCLT. Potential offers fell short of expectations. Creditors aim to recover funds through arbitration against Pratt & Whitney and a land auction in Thane. The airline owes around ₹6,200 crore. Led by the Central Bank of India, lenders are pursuing over $1 billion in claims against Pratt & Whitney for supplying faulty engines, which contributed to the airline's bankruptcy.
  
  
• The Delhi High Court has assigned a special CBI Court to expedite the trial of India's largest bank fraud case involving Dewan Housing Finance Ltd (DHFL). Promoters Dheeraj and Kapil Wadhawan are accused in the Rs 34,614 crore loan fraud. The CBI's chargesheet, containing over 330,000 pages, implicates 108 individuals and entities. Given the case's complexity and volume of documents, the special CBI Court requested exclusive handling. The trial is expected to take several years even with daily proceedings.

Mutual funds are popular investments. We all have invested in mutual funds in one way or another. They give investors exposure to a wide variety of assets by pooling together money from different investors and purchasing stocks, bonds, and other securities. Funds are managed by portfolio or money managers who try to generate gains or income for their investors. Fund portfolios are designed to match their goals and objectives.

You all must have question what is arbitrage funds? Is it a mutual fund? If yes... then how it works? So scroll, read and learn.

Arbitrage mutual funds are a type of investment fund that aims to make money by exploiting price differences of the same or similar securities in different markets. In simpler terms, these funds buy and sell the same assets in different markets or forms to take advantage of price differences and make a profit. Let’s say, a fund purchased stock in the cash market and sell that in the futures market with higher price in less time. It is appeal to investors who want to profit from volatile markets without taking on too much risk. Sounds good right?

Now, you all must wondering how does these funds works?

Let's look at the two possible scenarios where arbitrage opportunities exist:

Scenario 1: Price Difference between Exchanges

Let's say that the stock of XYZ Limited is selling at Rs. 1000 per share on the Bombay Stock Exchange (BSE) and at Rs. 1010 per share on the National Stock Exchange (NSE).

If the fund manager of an arbitrage fund spots this opportunity, then he buys shares from the BSE and simultaneously sells them on the NSE. This allows him to make a profit of Rs. 10 per share (less transaction costs) without any risks.

Scenario 2: The Price Difference between the Cash and Futures Markets

Let's say that the share of XYZ Limited trades at Rs. 1000 in the cash market and Rs. 1015 in the futures market. The fund manager of the arbitrage fund buys shares from the cash market and creates a futures contract to sell the shares at Rs. 1015. At the end of the month, he sells the shares in the futures market and books a profit of Rs. 15 per share (less transaction costs) without taking any risks.

While arbitrage mutual funds can offer profitable or higher returns, they are not without their challenges. Let us look into the benefits & risks of funds:

• Benefits:

1. Lower Risk:

Since arbitrage involves exploiting price inefficiencies rather than predicting market movements, these funds are generally considered lower risk compared to traditional equity or bond funds.

2. Steady Returns:

The goal of arbitrage mutual funds is to provide consistent, albeit modest, returns. This can be appealing for investors looking for stability rather than high volatility.

3. Diversification:

Arbitrage funds often employ various strategies and trades, which can provide diversification within the fund itself. This diversification can reduce the overall risk of the fund.

• Risks

1. Market Conditions:

Arbitrage opportunities can diminish in highly efficient markets where price discrepancies are quickly corrected.

2. Transaction Costs:

Frequent trading to exploit price differences can lead to higher transaction costs, which may affect the fund’s net returns.

3. Complex Strategies:

The strategies used by arbitrage funds can be complex and require sophisticated risk management. It’s important for investors to understand the specific strategies employed by the fund.

4. Potential for Lower Returns:

Given their lower risk profile, the returns on arbitrage mutual funds might be lower compared to more aggressive investment strategies.

There's probably a very good chance that you haven't heard of arbitrage funds. That's because they aren't like your typical mutual funds. Unlike other funds, arbitrage funds place large orders and capitalize on price differentials for the same security in different markets. This allows investors to profit from market volatility without taking on too much risk. This is only one of the many types of investing in arbitrage. However, like all investments, it’s crucial to understand the underlying strategies, risks, and costs associated with these funds.

Stock name: Jubilant Foodworks Ltd.

Pattern: Double bottom pattern

Time frame: Weekly

Observation:

Since October 2021, the stock has been in a downward trend. From November 2022 to July 2024, it formed a double bottom pattern on its weekly chart. This week, the stock registered a breakout from the pattern. If today's trading session ends with the weekly candle closing above the breakout line, it will be crucial. However, the RSI level is currently in the overbought zone. Technical analysis indicates that if the breakout gains momentum, the stock could 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: Shyam Metalics and Energy Ltd.

Pattern: Cup and handle pattern and retest

Time frame: Daily

Observation:

Since March 2023, the stock has surged significantly. From February to July 2024, it stabilized, forming a cup and handle pattern on its daily chart. A breakout occurred on July 31, 2024, supported by high trading volume and a positive MACD indicator. However, the stock has faced retest immediately so additional confirmation is required to check if the pattern is complete. Despite a retest of the breakout, the stock's RSI level remains favourable. Technical analysis suggests that if the stock rebounds from the retest, it may 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:

• IRDAI has fined HDFC Life Rs 2 crore for regulatory violations during 2017-2020. The penalties include Rs 1 crore for issues affecting policyholders' interests and Rs 1 crore for outsourcing irregularities. Following an inspection in September 2020, IRDAI also issued directives for HDFC Life to ensure regulatory compliance within a specified timeframe.
  
  
• Tata Motors' CFO stated that Jaguar Land Rover (JLR) currently has no plans to utilize India's new EV policy, which offers import duty concessions for manufacturers. The policy is deemed unsuitable for JLR at this time, though the company is considering CKD manufacturing options. Announced in March, the policy aims to attract global EV manufacturers to India. JLR is focusing on localizing production for models like the Range Rover. The new EV policy requires significant investment and operational commitments within three years.
  
  
• Zomato shares jumped 10% to Rs 257.95 after reporting a PAT of Rs 253 crore for the June quarter, up from Rs 2 crore last year. Revenue grew 74% year-on-year to Rs 4,206 crore. Brokerages like CLSA raised their target price to Rs 350, with others like Motilal Oswal, Nomura, Bernstein, UBS, and Nuvama also increasing their targets, citing strong growth in food delivery and quick commerce.

Stock name: ICICI Securities Ltd.

Pattern: Double bottom pattern and retest

Time frame: Daily

Observation:

The stock experienced a sharp decline in March 2024 but later stabilized, forming a double bottom pattern on its daily chart. It broke out from this pattern on June 26, 2024. Following the breakout, there was some upward movement, though the stock has since undergone a retest. Currently, its RSI is above 50. According to technical analysis, a strong bounce back might drive 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: Page Industries Ltd.

Pattern: Inverse head and shoulders pattern

Time frame: Daily

Observation:

The stock has been declining since October 2022. Between October 2023 and July 2024, it formed an inverse head and shoulders pattern on its daily chart. A confirmed breakout from this pattern occurred on July 23, 2024, supported by a positive MACD indicator. Currently, the RSI level is high. Technical analysis suggests that if the stock sustains its current momentum, it could see 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:

• Infosys shares dropped 1% following news of an investigation by the Directorate General of GST Intelligence into an alleged Rs 32,000 crore GST evasion. The stock hit a low of Rs 1,845.40 on BSE. Infosys clarified that GST should not apply to services provided by overseas branches and asserted compliance with all GST obligations. The company addressed the matter through a filing to the exchanges.
  
  
• India's electric two-wheeler makers are preparing for a future without government subsidies amid uncertainty about their inclusion in the FAME III scheme. Executives stress the potential impact on demand and consumer adoption but are focusing on improving product quality. Despite reduced subsidies and falling sales, market penetration is expected to double by FY26. The government extended the Electric Mobility Promotion Scheme (EMPS) by two months. Commerce Minister Piyush Goyal stated that electric two-wheelers can compete without subsidies.
• India reduced the windfall tax on domestically produced petroleum crude to Rs 4,600 per tonne from Rs 7,000 per tonne due to lower crude prices. Export duties on petrol, diesel, and aviation turbine fuel remain nil. The new rates took effect on August 1, as announced by the CBIC. This tax, imposed in July 2022, is revised fortnightly and aims to curb refiners from selling fuel overseas to benefit from high margins.

Stock name: CreditAccess Grameen Ltd.

Pattern: Head and shoulders pattern and retest

Time frame: Weekly

Observation:

Since its listing, the stock has been on an upward trajectory. Recently, it formed a head and shoulder pattern on its weekly chart and broke out in July 2024. After an initial decline, it is now retesting the breakout level. The RSI is currently in a low zone, and the MACD indicator is bearish. Technical analysis indicates that if the stock completes the retest and gains downward momentum, it may experience further decline.

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: Cera Sanitaryware Ltd.

Pattern: Flag and pole pattern

Time frame: Daily

Observation:

In June 2024, the stock experienced a rapid upward movement. During July 2024, it consolidated, forming a flag and pole pattern on its daily chart. The stock remains in consolidation without breaking out. This consolidation has cooled the RSI to a favourable zone. Technical analysis suggests that if the stock gains upward momentum and breaks out, it may 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:

• Godrej Properties, part of Godrej Industries Group, has acquired a 46-acre land parcel in Indore for plotted residential development. Located off Indore-Ujjain Road, the site will offer around 1.16 million sq ft of saleable area. The area is well-connected to key landmarks and benefits from expanding metro lines and infrastructure development, making it a promising market for residential projects.
  
  
• IDFC First Bank's CEO V Vaidyanathan stated that the bank has transitioned to retail deposits, reducing the need for aggressive deposit and branch expansion. Provisions are expected to stay elevated in the near term due to asset quality issues, with improvement anticipated from Q3 onwards. The bank has adjusted its deposit and credit growth targets accordingly.
  
  
• JSW Cement, led by Sajjan Jindal, is considering acquiring CK Birla's stake in Orient Cement Ltd (OCL). This move comes amid sector consolidation, with Aditya Birla and Adani groups also in negotiations to take over the company. Orient Cement's stock has rallied 56% in three months, and acquiring it could help JSW ramp up its capacity to 24 MTPA. A reverse merger could also enable JSW Cement to get listed.

Stock name: Ujjivan Small Finance Bank Ltd.

Pattern: Double top pattern and retest

Time frame: Daily

Observation:

The stock has been moving upward since June 2022. However, it formed a double top pattern on its weekly chart from July 2023 to July 2024. The stock broke out from this pattern in mid-July 2024 and, after a slight dip, is now retesting the breakout level. Despite this, the RSI remains very low. According to technical analysis, if the stock completes the retest and regains downward momentum, it may experience further decline.

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: NLC India Ltd.

Pattern: Cup and handle pattern

Time frame: Daily

Observation:

Since October 2023, the stock has experienced significant upward movement. From February to July 2024, it stabilized, forming a cup and handle pattern on its daily chart, but has yet to break out. This breakout line might act as resistance. The MACD indicator is near a bullish signal, and the RSI level is in the favourable zone. According to technical analysis, a breakout with good momentum may 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:

• Hindustan Zinc is focusing on battery technology for energy transition, aiming to replace lithium with zinc. Chairperson Priya Agarwal Hebbar highlighted zinc and silver's growing demand at the annual general meeting. The company partnered with AEsir Technologies to develop zinc-based batteries, emphasizing their safety and cost benefits. CEO Arun Misra noted the challenges of lithium availability and safety, making zinc a credible alternative. Hindustan Zinc is also collaborating with Indian academic institutions on battery research.
  
  
• Hindustan Petroleum Corporation (HPCL) is investing in petrochemical manufacturing through joint ventures and building India's first integrated refinery and petrochemical complex in Rajasthan. They established a strategic petrochemical unit and a subsidiary, HPCL Renewable & Green Energy Ltd., to focus on green energy. The subsidiary has started supplying renewable energy and HPCL has expanded its renewable portfolio to 208 MW and increased EV charging facilities to 3,603 outlets.
  
  
• The Aditya Birla Group is entering the jewellery sector with its brand Indriya, aiming to compete with Tata's Tanishq and Reliance Jewels. Indriya will open stores in Delhi, Indore, and Jaipur, expanding to over 10 cities within six months. With a Rs 5,000 crore investment, the group aims to be a top three player in five years. The jewellery sector is shifting from unorganised to organised markets, driven by rising consumer trust in brands and expansion into tier I and II cities. Organised players now hold 36-38% of the market share.

Stock name: Emami Ltd.

Pattern: Flag and pole pattern

Time frame: Daily

Observation:

At the beginning of June 2024, the stock experienced a rapid rise. It then consolidated through the month of June and early July, forming a flag and pole pattern on the daily chart. On July 8, 2024, the stock broke out of this pattern with above-average trading volume. Following the breakout, the stock continued to move upward. According to technical analysis, if the stock maintains its current momentum, it might 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.

Stock name: GMM Pfaudler Ltd.

Pattern: Double bottom pattern and retest

Time frame: Daily

Observation:

Since September 2023, the stock has been in a downward trend but has recently stabilized, forming a double bottom pattern on its daily chart. It broke out of this pattern on July 12, 2024, with above-average trading volume, followed by an immediate retest. The stock has rebounded from the retest and closed above the breakout level. Additionally, it shows a bullish MACD indicator and a favourable RSI level. Technical analysis suggests that if the stock maintains its rebound 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.

News for the day:

• Ola Electric, backed by SoftBank, is set to open its IPO for retail subscription on August 2, aiming to raise Rs 5,500 crore. This marks India's first IPO for an electric vehicle startup. Investors should note key aspects such as the company's financial health, market potential, and the impact of current industry trends. The IPO will include both new shares and an offer for sale.
  
  
• Yes Bank is in discussions to allow its lenders, particularly State Bank of India (SBI), to exit their stakes. Managing director and chief executive Prashant Kumar confirmed that the bank is negotiating with potential investors for this stake sale. Regulations prevent banks from holding stakes in other banks long-term, prompting these talks. This move is part of Yes Bank's broader strategy to comply with regulatory requirements and optimize its shareholder structure.
  
  
• UltraTech Cement's Board has approved the purchase of a 32.72% stake in India Cements from its promoters and associates, following an earlier acquisition of a 22.77% stake. This deal, which is subject to regulatory approval, will bolster UltraTech's capacity in Southern India. The transaction involves paying Rs 3,954 crores at Rs 390 per share, triggering a mandatory open offer. Chairman Kumar Mangalam Birla emphasized the economic and infrastructural benefits, aligning with UltraTech’s goal to enhance India's infrastructure.