Blog posts of '2024' 'May'

Stock name: Narayana Hrudayalaya Ltd.

Pattern: Head and shoulders pattern

Time frame: Daily

Observation:

Since its listing, the stock has consistently trended upwards. From November 2023 to May 2024, it stabilized, forming a head and shoulder pattern on the daily chart. On May 28, 2024, the stock broke out from this pattern with above-average trading volume and a negative MACD signal. Currently, the RSI is very low. According to technical analysis, if this 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: Aurobindo Pharma Ltd.

Pattern: Cup and handle pattern and retest

Time frame: Weekly

Observation:

The stock has been moving sideways for a long time and formed a cup and handle pattern on its weekly chart. It broke out from this pattern in May 2024, supported by average trading volume and a positive MACD signal. However, the stock is now retesting the breakout level. Currently, the RSI is in a favourable zone. According to technical analysis, if the stock rebounds from the retest, it may 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:

• Tata Steel's UK operations are expected to achieve an operating profit in H2 FY25, though the year will still end with a reduced loss. CEO T V Narendran noted improved cost efficiency and stable demand, ensuring profitability despite steel price drops. Tata Steel is also restructuring in Europe due to carbon taxes, transitioning 7 million tonnes in the Netherlands over the next decade. The company aims to reduce its net debt to EBITDA ratio below 2.5 by year-end.
  
  
• Oil and Natural Gas Corp (ONGC) will form a joint venture with EverEnviro Resource Management to build 10 compressed biogas (CBG) plants, aiming to reduce CO2 emissions by 7.5 lakh tons annually. This collaboration marks ONGC's transition into renewable energy, including solar, wind, and biofuel projects. ONGC aims to achieve net-zero emissions by 2038 and sees this partnership as a critical step in advancing renewable energy in India.
  
  
• Angel One, India's third-largest stock broker, plans to restructure by creating a holding company for its various business entities. This move aims to allow each entity, including credit, asset management, and wealth management, to operate independently. The restructuring seeks regulatory clearances and new licenses, potentially enhancing focus on lending, wealth management, and insurance. The holding company will remain listed, consolidating group revenues.

Stock name: Sundram Fasteners Ltd.

Pattern: Double bottom pattern and retest

Time frame: Daily

Observation:

The stock has declined since October 2023 but stabilized between February and May 2024, forming a double bottom pattern on its daily chart. A significant breakout occurred on May 15, 2024, supported by above-average trading volume. However, the stock has since retested the breakout level. Currently, the RSI has cooled to a favourable zone. Technical analysis suggests that if the stock rebounds from this 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.

Stock name: Divi's Laboratories Ltd.

Pattern: Inverse head and shoulders pattern

Time frame: Weekly

Observation:

Since October 2021, the stock has been declining but formed an inverse head and shoulders pattern on its weekly chart between May 2022 and May 2024. It broke out of this pattern at the end of May 2024, supported by a significant gap-up opening the following week. The RSI level is currently high. Technical analysis indicates that if the stock maintains its momentum, it may 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:

• United Breweries (UBL), AB-InBev, and Carlsberg have launched the Brewers' Association of India (BAI) with the World Brewing Alliance (WBA). Aiming to drive innovation, moderation, and sustainability, the BAI will address industry growth barriers and promote responsible drinking. Together, these companies control 85% of India's beer market. Vinod Giri will lead BAI from June 1, 2024.
  
  
• State Bank of India (SBI) is selling the personal guarantees provided by Nikhil Gandhi, former promoter of Reliance Naval and Engineering, with a reserve price of ₹3.48 crore. As of May 31, 2024, SBI's outstanding principal dues are ₹1,160 crore, with total dues amounting to ₹3,512 crore. This sale, the largest in the secondary market for personal guarantees, highlights the minimal recovery expected compared to the claim amount. The auction is set for June 25, with expressions of interest due by May 31.
  
  
• Power Mech Projects has secured a Rs 563 crore order from BHEL to construct a nuclear power plant at the Kaiga Atomic Power Project. This marks the company's entry into the nuclear sector. The construction will be focusing on civil, structural, and architectural works for units 5 and 6. PMPL's Chairman, Sajja Kishore Babu, emphasized the project’s role in expanding nuclear power, which the government aims to increase to 22,480 MW by 2031.

Stock name: Birla Corporation Ltd.

Pattern: Head and shoulders pattern and retest

Time frame: Daily

Observation:

The stock experienced an upward trend in 2023 but stabilized from December, forming a head and shoulders pattern on its daily chart. In May 2024, it broke out of this pattern, supported by a bearish MACD indicator. Since the breakout, the stock has been retesting the breakout level and is currently below it, with a low RSI. Technical analysis suggests that if the stock gains downward momentum, 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: RITES Ltd.

Pattern: Double bottom pattern

Time frame: Daily

Observation:

The stock has been in a downward trend since February 2024. Between April and May 2024, it stabilized and formed a double top pattern on its daily chart. On May 18, 2024, the stock broke out from this pattern, supported by a bullish MACD indicator. After the breakout, the stock underwent a significant retest leading to a favourable RSI level. Technical indicators suggest that if the stock rebounds from the retest, it may 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:

• One97 Communications, Paytm's parent company, denied any discussions with the Adani Group about acquiring a stake, calling recent media reports speculative and untrue. Both One97 and the Adani Group emphasized compliance with SEBI regulations and dismissed the rumours as baseless.
  
  
• LIC's assets have surpassed Rs 50 lakh crore, nearly double Pakistan's GDP. In FY24, LIC reported a profit of Rs 40,676 crore and total premium income of Rs 4,75,070 crore. With a 59% market share in Indian life insurance, LIC is now eyeing the health insurance sector. Its market value surged by 52% in six months, becoming the seventh-largest stock by market capitalization.
  
  
• Maruti Suzuki has opened its 5,000th service touchpoint in Gurugram, inaugurated by CEO Hisashi Takeuchi. The company plans to double its capacity to 4 million units annually by FY31, expanding its service network across 2,500 cities. Last fiscal year, Maruti Suzuki added 400 service touchpoints and serviced 25 million vehicles.

Stock name: Gujarat State Petronet Ltd.

Pattern: Double top pattern

Time frame: Daily

Observation:

The stock has been rising since June 2022 but recently stabilized, forming a double top pattern on its daily chart. On April 22, 2024, it experienced a significant gap down opening, breaking out from the pattern with high trading volume and a bearish MACD. Since the breakout, the stock has continued to decline below the breakout line at a slower pace, with its RSI at very low levels. Technical analysis indicates that if this trend persists, the stock may continue to move downward.

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: Pidilite Industries Ltd.

Pattern: Symmetrical triangle pattern and retest

Time frame: Weekly

Observation:

Since 2022, the stock has been trading sideways, forming a symmetrical triangle pattern on its weekly chart from January 2022 to March 2024. In March 2024, the stock broke out of this pattern with above-average trading volume. Following the breakout, a retest helped cool off the overbought RSI, and the stock successfully rebounded. Technical analysis suggests that 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 Enterprises' board has approved raising Rs 16,600 crore through Qualified Institutional Placement (QIP). This initiative requires approval at the June 24 AGM and from regulators. Previously, Adani Enterprises had approved a Rs 12,500 crore QIP in May 2023, which wasn't executed. Additionally, Adani Energy Solutions also plans to raise Rs 12,500 crore through QIP.
  
  
• LIC is considering entering the health insurance sector and evaluating acquisitions, anticipating new composite insurance licenses. This move aims to boost India's under-penetrated health insurance market. LIC reported a 2% rise in Q4 FY24 net profit to Rs 13,763 crore and annual profits of Rs 40,676 crore, recommending a final dividend of Rs 6 per share.
  
  
• UltraTech Cement has offered to acquire a 31.6% stake in UAE-based RAK Cement Co through its subsidiary, UltraTech Cement Middle East Investments Ltd. This follows an earlier announcement of a $101.10 million investment for a 29.39% stake. The acquisition offer period runs from May 28 to June 24, 2024. RAKWCT, listed on the Abu Dhabi stock exchange, had a Rs 482.5 crore turnover in 2021.

Stock name: Clean Science and Technology Ltd.

Pattern: Double bottom pattern and retest

Time frame: Daily

Observation:

The stock experienced a decline starting in January 2024, which stabilized between March and May, forming a double bottom pattern on the daily chart. It had a significant breakout on May 22, 2024, with substantial trading volume. However, after the breakout, the stock is undergoing a major retest, causing its RSI to drop to around 55. According to technical analysis, if the stock rebounds from this 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.

Stock name: Finolex Cables Ltd.

Pattern: Cup and handle pattern

Time frame: Weekly

Observation:

The stock has shown an overall upward trend. From the period January 2018 to May 2024, the stock has formed a cup and handle pattern on its weekly chart. In May 2024, it broke out of this pattern with significant trading volume. This breakout was reinforced by a positive MACD signal recently. According to technical analysis, if the stock sustains this breakout momentum, it may continue its 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:

• Mukesh Ambani's Reliance Industries Ltd (RIL) is entering the African telecom market through its subsidiary Jio Platforms Ltd (JPL). Radisys, owned by JPL, is teaming up with Tech Mahindra and Nokia to partner with Next-Gen Infrastructure Co. (NGIC). NGIC, partly owned by the Ghanaian government, will be Africa's first neutral 5G shared infrastructure provider, starting in Ghana and expanding continent-wide. This marks RIL's entry into the global telecom tech sector.
  
  
• Jaguar Land Rover (JLR) will start assembling the Range Rover and Range Rover Sport in India, reducing prices by 18-22%. This will lower the Range Rover to Rs 2.6 crore from Rs 3.3 crore and the Range Rover Sport to Rs 1.4 crore from Rs 1.8 crore. Assembling locally in Pune, JLR aims to capitalize on India's 15% duty on kits versus over 100% on imports. Tata Sons chairman N Chandrasekaran highlighted this as a sign of confidence in the Indian market.
• IDBI Bank's Stressed Assets Stabilisation Fund (SASF) received 18 expressions of interest from asset reconstruction companies to buy ₹6,151 crore in non-performing loans. SASF aims to recover 11.59%, with a reserve price of ₹713 crore. Notable interested ARCs include Arcil, JC Flowers, and Edelweiss. The auction date will be announced soon.

Stock name: Avenue Supermarts Ltd.

Pattern: Double bottom pattern

Time frame: Weekly

Observation:

The stock has been declining since October 2021 but later formed a double bottom pattern on its weekly chart. In April 2024, it broke out of this pattern with above-average trading volume. Following the breakout, the stock moved sideways, bringing the RSI below the overbought zone. According to technical analysis, if the stock gains upward 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: Kajaria Ceramics Ltd.

Pattern: Double bottom pattern and retest

Time frame: Daily

Observation:

The stock has been declining since August 2023 but stabilized from March to May 2024, forming a double bottom pattern on its daily chart. It broke out of this pattern around May 21, 2024, with higher-than-average trading volume. Following the breakout, the stock faced a significant retest, cooling down its overbought RSI levels. According to technical analysis, if the stock rebounds from this retest, it may continue moving 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:

• IndiGo, operated by Interglobe Aviation, will launch a customized business product for India's busiest routes by year-end, marking a shift from its current economy-only offerings. CEO Pieter Elbers highlighted the move as part of IndiGo's innovation strategy. The airline, which saw a 13% rise in domestic passengers and a significant profit increase in Q4FY24, will reveal more details in August.
  
  
• Adani Enterprises is likely to join Sensex, possibly replacing Wipro, in BSE's upcoming semi-annual index reshuffle. This change is expected to bring inflows of $118 million for Adani and outflows of $56 million for Wipro. BSE, India's key stock exchange, will announce the changes soon, with adjustments taking effect on June 21. This move follows a sustained rally in Adani Enterprises' shares.
  
  
• JSW Paints achieved its first operating profit in FY24, crossing Rs 2,000 crore in revenue. The company targets Rs 5,000 crore in revenue by FY26 by expanding its retail presence in home decor and adding industrial coating products. With a network of 6,000 retailers and plans to grow this by 2,000-2,500 annually, JSW Paints aims to outpace market growth by 5 to 10 times. The company has invested Rs 900 crore in its business and plans continued expansion to capitalize on the fast-growing Indian paints market.

Stock name: Tata Motors Ltd.

Pattern: Double top pattern and retest

Time frame: Daily

Observation:

Post-COVID, the stock experienced a significant upward rally which has recently stabilized. From February to May 2024, it formed a double top pattern on its daily chart and broke out of this pattern on May 16, 2024, with above-average trading volume. After the breakout, the stock retested and moved above the breakout level. Currently, the RSI of the stock is low. According to technical analysis, if the stock loses momentum and falls below 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: Hero MotoCorp Ltd.

Pattern: Rounding bottom pattern

Time frame: Monthly

Observation:

From September 2017 to December 2023, the stock formed a rounding bottom pattern on its monthly chart. It broke out of this pattern in December 2023 along with the support of above-average trading volume. Following the breakout, the stock has been rising and maintaining a high RSI level. Technical analysis suggests that if the stock sustains its current momentum, it may continue its upward trend.

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:

• Ericsson, the Swedish telecommunications equipment manufacturer, is optimistic about securing 4G and 5G contracts from Vodafone Idea (Vi) following the telecom company's recent equity raise of over Rs 20,000 crore. Nitin Bansal, Managing Director of Ericsson India, shared this optimism in an interview with ET. He also mentioned that Ericsson is considering exporting its 5G equipment from India.
  
  
• Karur Vysya Bank plans to open 100 new branches nationwide this financial year, as announced by MD and CEO B Ramesh Babu. The bank's 840th branch was inaugurated in Ayodhya by Chairperson Meena Hemchandra. With a record net profit of Rs 1,605 crore and a net NPA of 0.40% as of March 31, 2024, the bank continues to demonstrate strong growth and asset quality. So far, 39 branches have been opened this year, with the new branch in Ayodhya marking the 35th in the Delhi division.
  
  
• Godrej Properties Ltd has sold around 650 flats in Noida, generating over Rs 2,000 crore in revenue, highlighting strong consumer demand for residential properties. The sales came from their newly launched project, Godrej Jardinia, in Sector 146, which debuted in May 2024. This marks Godrej Properties' most successful launch in Noida to date. MD & CEO Gaurav Pandey emphasized the company's plans to expand its presence in Noida, recognizing it as a key market. Godrej Properties is a leading real estate developer with significant operations in the Mumbai Metropolitan Region, Delhi-NCR, Pune, and Bengaluru.

Stock name: Cyient Ltd.

Pattern: Double top pattern

Time frame: Daily

Observation:

The stock has shown a strong upward trend since the post-COVID period. Between December 2023 and April 2024, it stabilized and formed a double top pattern on its daily chart. On April 29, 2024, it broke out from this pattern. Following the breakout, the stock is trending downward with a low RSI. According to technical analysis, if the breakout momentum holds, 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: Gujarat Mineral Development Corporation Ltd.

Pattern: Rounding bottom pattern

Time frame: Monthly

Observation:

From November 2007 to September 2023, the stock formed a rounding bottom pattern on its monthly chart. It broke out from this pattern in September 2023, supported by strong trading volume and a bullish MACD. Following the breakout, the stock moved upward but has corrected in the past couple of months, which helped cool down the RSI from the overbought zone. According to technical analysis, if the stock rebounds from this correction, 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:

• Muthoot FinCorp achieved its highest-ever loan disbursements in FY24 at Rs 61,703.26 crore, up 18.6%, with a consolidated net profit of Rs 1,047.98 crore, a 62% increase. Standalone disbursements rose 15% to Rs 50,167.12 crore, and profit after tax increased by 22.4% to Rs 562.81 crore. The company's customer base grew by 14% to 42.98 lakh.
  
  
• The suspension of mining operations at Vedanta's iron ore mine in Chitradurga, Karnataka, has been lifted. The suspension was initially imposed in April due to non-compliance with the approved mining plan. Following rectification work and a satisfactory inspection by the authorities, the Office of the Regional Controller of Mines revoked the suspension order on May 21, 2024. Vedanta reported no significant adverse impact from the suspension.
  
  
• Paytm reported a widened loss of Rs 550 crore for Q4 ending March 2024, compared to Rs 169 crore in the same quarter last year. Revenue dropped 3% YoY to Rs 2,267 crore. The results were affected by temporary UPI transition disruptions and a permanent impact due to the Paytm Payments Bank embargo. The company anticipates an annualized direct impact on EBITDA of around Rs 500 crore due to the embargo.

Stock name: Steel Authority of India Ltd.

Pattern: Cup and handle pattern

Time frame: Monthly

Observation:

Since 2007, the stock has been declining. From April 2011 onwards, it stabilized and formed a cup and handle pattern on its monthly chart. In April 2024, the stock broke out of this pattern with above-average trading volume. Although the stock is now moving upward, its RSI level is currently in the overbought zone. Technical analysis suggests that if the stock maintains its breakout 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.

Stock name: Indus Towers Ltd.

Pattern: Double bottom pattern

Time frame: Monthly

Observation:

The stock has been declining since May 2015. From April 2019 to April 2024, it stabilized, forming a double bottom pattern on its monthly chart. In April 2024, the stock broke out of this pattern with above-average trading volume. Currently the RSI level of the stock is in overbought zone. Technical analysis suggests that if the breakout momentum holds, the stock 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:

• JSW Cement will invest Rs 3,000 crore to set up a cement manufacturing facility in Nagaur, Rajasthan. The facility will include clinkerization and grinding units, an 18 MW waste heat recovery system, and a 7-km conveyor for limestone transport. This investment, funded by equity and debt, will create over 1,000 jobs and supports JSW Cement's goal of expanding its capacity to 60 MTPA.
  
  
• Tata Motors has partnered with Bajaj Finance to offer supply chain finance solutions to its passenger vehicle and electric mobility dealers. This collaboration will help dealers access funding with minimal collateral, enhancing their working capital and enabling them to capitalize on the growing passenger vehicle market.
  
  
• Godrej Properties acquired 10 land parcels worth over Rs 21,000 crore in FY24 for housing projects. The company aims to buy more parcels generating Rs 20,000 crore in sales bookings this fiscal and plans to launch projects worth Rs 30,000 crore to achieve 20% sales growth. In FY24, sales bookings rose 84% to Rs 22,527 crore, and quarterly profits increased by 14%.