Blog posts of '2024' 'June'

Stock name: UTI Asset Management Company Ltd.

Pattern: Double bottom pattern and retest

Time frame: Weekly

Observation:

Since September 2021, the stock experienced a downward trend but later stabilized, forming a double bottom pattern on its weekly chart. It broke out of this pattern in January 2024, but faced a significant retest afterward. The stock has since rebounded and is now supported by a bullish MACD signal and a favourable RSI level. According to technical analysis, if the current momentum is maintained, 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.

Stock name: NBCC (India) Ltd.

Pattern: Rounding bottom pattern and retest

Time frame: Monthly

Observation:

From December 2017 to February 2024, the stock formed a rounding bottom on its monthly chart, breaking out in February 2024 with above-average trading volume. After the breakout, the stock experienced a major retest but has since rebounded strongly. Currently, it is moving upward with strong momentum. Technical analysis suggests that if the stock maintains this 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:

• The Tata Group remains India's top brand in the Brand Finance India Report 2024, nearing a USD 30 billion valuation with 9% growth. Infosys grew 9% to USD 14.2 billion, and HDFC Group, following its merger, is third at USD 10.4 billion. Banking and telecom sectors saw significant brand value increases, with Taj continuing as the strongest Indian brand.
  
  
• Raymond has reappointed Gautam Hari Singhania as Managing Director for five years starting July 1, 2024, despite advisory recommendations against it and calls for an independent investigation into allegations by his estranged wife. The National Company Law Tribunal has approved Raymond’s corporate restructuring, allowing for a more focused corporate structure. In Q4, Raymond reported an 18% profit increase to Rs 229 crore.
  
  
• BHEL has secured a Rs 13,300 crore order to set up a 1600 MW thermal power plant in Koderma, Jharkhand, from Damodar Valley Corporation (DVC). This project, aligned with the central government's energy security goals, involves an engineering, procurement, and construction (EPC) package. The new plant will raise DVC's installed thermal generation capacity to 8140 MW by 2030, significantly impacting the local economy and benefiting the community.

Stock name: Hindustan Petroleum Corporation Ltd.

Pattern: Head and shoulders pattern

Time frame: Daily

Observation:

The stock experienced a rapid upward movement starting in October 2023 but has stabilized in 2024. From April to June 2024, it formed a head and shoulders pattern on the daily chart, nearing a breakout point but not yet breaking out. Currently, the breakout line acts as support, preventing further downward movement. However, the RSI is low. Technical analysis indicates that if the stock breaks down from the trend line, it may continue to 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: IDFC First Bank Ltd.

Pattern: Double bottom pattern

Time frame: Daily

Observation:

The stock has experienced significant downward movement since September 2023. From January to June 2024, it formed a double bottom pattern on the daily chart but it has not registered a breakout yet. The stock is now approaching the breakout line but the breakout line currently may act as resistance unless breached with strong momentum. The RSI level is currently favourable. According to technical analysis, if the stock breaks out from the pattern, it may move in the upward direction.

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 Motors aims to capture 18-20% of the Indian passenger vehicle market by 2030, projecting the market to reach 60 lakh units annually. The company plans to expand its product lineup in both conventional and electric vehicles (EVs), aligning with upcoming CAFE III norms starting in 2027. These regulations will drive a shift towards EVs and CNG vehicles. Tata Motors' current market share in the domestic PV segment is 13.9%. The company also announced significant investments in new models, targeting the mid-SUV segment, and plans to invest Rs 16,000-18,000 crore in EVs over the next five to six years.
  
  
• Bajaj Auto has inaugurated its first overseas manufacturing facility in Manaus, Brazil. This plant will produce Dominar models and aims to strengthen Bajaj's presence in the growing Latin American two-wheeler market. Partnering with KTM AG and Triumph, the facility spans 9600 square meters and includes engine assembly, vehicle assembly, and testing capabilities. This marks a strategic shift from Bajaj's traditional distribution-led model in international markets.
  
  
• Hitachi Energy India has secured a Rs 790 crore order from Hitachi Energy Australia for the Marinus Link HVDC project, a significant Australian national energy initiative. The project will be executed over four years, with key equipment delivered from India. The Marinus Link is crucial for Australia's energy infrastructure, and Hitachi Energy's involvement underscores its importance in supporting the country's energy ecosystem.

Stock name: Shree Cement Ltd.

Pattern: Triple bottom pattern and retest

Time frame: Daily

Observation:

The stock has been declining since February 2024 and formed a triple bottom pattern on the daily chart. It broke out from this pattern on June 10, 2024, supported by a bullish MACD and above-average trading volume. After the breakout, the stock retested the breakout level. The RSI is currently in a favourable zone. Technical analysis suggests that if the stock rebounds from the retest, 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: Sterlite Technologies Ltd.

Pattern: Double bottom pattern

Time frame: Daily

Observation:

The stock has been declining since 2021. Recently, from February to June 2024, it stabilized and formed a double bottom pattern on the daily chart. On June 25, 2024, it closed above the neckline but has yet to see a proper breakout. The RSI is currently in a favourable zone. Technical analysis suggests that a significant breakout 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:

• Textiles Minister Giriraj Singh announced the approval of a production-linked incentive (PLI) scheme worth over Rs 10,000 crore for the textiles industry, with potential plans to extend it to the garments sector. Speaking at the India International Garment Fair, Singh emphasized the ministry's goal to surpass China in the textile sector and urged the industry to target $50 billion in exports in the coming years. In 2021, the government had approved a ₹10,683 crore PLI scheme for five years to boost the production of man-made fibre apparel, fabrics, and technical textiles products.
  
  
• Punjab & Sind Bank has signed an agreement with the Indian Army to provide a tailored salary account, PSB Gaurav Bachat SB, for serving and retired personnel, including Agniveers under the Agnipath scheme. The MoU offers benefits like personal accident insurance up to Rs 1 crore and air accident insurance up to Rs 1.2 crore. The bank also introduced the PSB Pink debit card for women and demat services through Fisdom. Additionally, it partnered with Maruti Suzuki India for vehicle loans and IIM Amritsar for academic collaboration. The bank launched the PSB UNiC App for enhanced digital banking services.
  
  
• Adani Enterprises plans to invest $21 billion (₹1.75 lakh crore) in its airport business over the next decade, according to group CFO Jugeshinder Singh. This investment will be managed by Adani Airport Holdings, a wholly owned subsidiary that operates seven airports: Mumbai, Lucknow, Ahmedabad, Jaipur, Guwahati, Thiruvananthapuram, and Mangalore. The first phase of city-side development has commenced on 98 acres at the Mumbai, Ahmedabad, Jaipur, Lucknow, and Guwahati airports.

Stock name: Eicher Motors Ltd.

Pattern: Cup and handle pattern and retest

Time frame: Monthly

Observation:

The stock has formed a cup and handle pattern on its monthly chart, spanning from 2017 to 2023. It broke out of this pattern in December 2023, with support from a bullish MACD indicator and average trading volume. However, it experienced a retest immediately afterward. Currently, the stock has rebounded from this retest and is moving upward. 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.

Stock name: Equitas Small Finance Bank Ltd.

Pattern: Double bottom pattern and retest

Time frame: Daily

Observation:

The stock has been declining since January 2024. From March to June 2024, it stabilized and formed a double bottom pattern on the daily chart. On June 14, 2024, the stock broke out from this pattern with significant trading volume. It is currently retesting the breakout, which has cooled the overbought RSI level. According to technical analysis, a successful rebound from this retest may signal 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:

• India's 5G airwaves auction, valued at over Rs 96,000 crore, starts Tuesday with major telecom players like Reliance Jio, Bharti Airtel, and Vodafone Idea competing. Unlike the record-setting Rs 1.5 lakh crore auction in 2022, this auction is expected to be more subdued, with analysts predicting purchases around Rs 12,500 crore due to existing 5G holdings and lower earnest money deposits.

• Larsen and Toubro (L&T) has secured a significant contract, valued between Rs 1,000 crore and Rs 2,500 crore, to build a grid-connected solar plant with a battery energy storage system in Kajra village, Lakhisarai district, Bihar. This project will help Bihar harness renewable energy, manage climate change challenges, and meet growing energy demands. The storage system will balance supply and demand, regulate frequency, and support voltage stability.
  
  
• Hindustan Copper, a state-owned enterprise, plans to develop two copper mines in Jharkhand, with Adani Enterprises and Hindalco Industries showing preliminary interest. This was revealed during a pre-bid conference. The mines, including the long-closed Rakha mine, have a combined capacity of 3 million metric tons. The Rakha mine was previously closed due to high operating costs.

Stock name: KPIT Technologies Ltd.

Pattern: Double bottom pattern

Time frame: Daily

Observation:

Between March and June 2024, the stock formed a double bottom pattern on its daily chart. On June 21, 2024, it registered a gap-up breakout from this pattern. The breakout was supported with substantial trading volume. The stock's RSI is currently in a favourable zone. According to technical analysis, 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.

Stock name: Balaji Amines Ltd.

Pattern: Double bottom pattern and retest

Time frame: Daily

Observation:

The stock has been declining since January 2024. Between March and June 2024, it stabilized and formed a double bottom pattern on the daily chart. On June 20, 2024, the stock broke out from this pattern with significant trading volume. Currently, it is retesting the breakout with a high RSI level. According to technical analysis, a successful rebound from this retest may signal 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:

• After investing nearly USD 1.2 billion over seven years with limited success, ONGC is seeking partners to salvage the Deen Dayal gas field in the KG basin. On June 12, ONGC invited international oil and gas firms with technical expertise and financial strength to express interest in partnering for the field's development. Since acquiring an 80% stake in the field in 2017 from GSPC, the field has produced negligible gas, facing technical challenges and sub-optimal performance from its seven development wells. ONGC aims to revise the field development plan and bids are due by September 12.
  
  
• Rail Vikas Nigam Limited (RVNL) has secured a Rs 191.53 crore contract from South Eastern Railway for a 132 KV traction substation project on the Raj Khaswan-Nayagarh-Bol section. The project aims to meet a 3000MT loading target within 18 months. RVNL, a PSU under the Ministry of Railways was incorporated in 2003 and received 'Navratna' status last year.
  
  
• The National Company Law Tribunal (NCLT) has permitted ZEE Entertainment Enterprises Limited (ZEEL) to withdraw its implementation application regarding its merger with Sony Group Corp-owned Culver Max Entertainment and Bangla Entertainment. ZEEL sought to withdraw the application after Culver Max and Bangla Entertainment terminated the merger agreement on January 22, citing an alleged breach of the merger cooperation agreement.

Stock name: Suzlon Energy Ltd.

Pattern: Cup and handle pattern

Time frame: Daily

Observation:

The stock has risen significantly since May 2023. During the period from February 2024 to June 2024 the stock has formed a cup and handle pattern on its daily chart. It is now close to breaking out of this pattern. Currently, the MACD indicator shows a bullish signal, and the RSI levels of the stock are in favourable zone. Technical analysis suggests that if the stock breaks out and gains 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: Navin Fluorine International Ltd.

Pattern: Double bottom pattern

Time frame: Daily

Observation:

The stock declined from May 2023, stabilizing and forming a double bottom pattern between January and June 2024. It broke out from this pattern on June 11, 2024, with above-average trading volume and a bullish MACD indicator. Since the breakout, the stock has moved upward. Currently, the RSI is in the overbought zone, suggesting a potential retest. As per technical analysis, if the stock maintains its 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.

News for the day:

• Sun Pharmaceutical Industries has signed a licensing deal with Takeda Pharmaceutical to market Vonoprazan, a new gastrointestinal drug, in India. The agreement allows Sun Pharma to commercialize 10 mg and 20 mg tablets of this treatment for acid peptic disorders under a non-exclusive patent license. Approved by the US FDA in November 2023, Vonoprazan is now authorized in India.
  
  
• Tata Motors launched Fleet Verse, a digital marketplace for its commercial vehicles, enabling users to discover, configure, purchase, and finance vehicles online through its dealership network. Key features include smart search, a product configurator, 3D visualizer, and online booking. Tata Motors will raise commercial vehicle prices by up to 2% from July 1, 2024, due to rising commodity costs. In May, the company sold 29,691 commercial vehicles, a 2% increase from the previous year.
  
  
• Vodafone Idea (Vi), supported by an ₹18,000 crore fund-raise, is enhancing its 4G coverage and network capacity in Uttar Pradesh and Uttarakhand. The company is deploying additional airwaves in the 900 MHz band to improve indoor network experiences and signal penetration in both urban and rural areas. This deployment aims to address coverage challenges in regions with dense building infrastructure and signal penetration issues.

Stock name: Gujarat Ambuja Exports Ltd.

Pattern: Double top pattern and retest

Time frame: Daily

Observation:

The stock followed an upward trend from August 2023 before stabilizing and forming a double top pattern on its daily chart. It broke out from this pattern in March 2023 but underwent a significant retest, closing above the breakout line. Currently, the stock has completed the retest and is moving downward. The RSI is low, and the MACD indicates a bearish signal. According to technical analysis, if the stock maintains its current momentum, it may continue to 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: HDFC Bank Ltd.

Pattern: Double bottom pattern

Time frame: Daily

Observation:

The stock has been declining since December 2023 and formed a double bottom pattern on its daily chart. In June 2024, it broke out from this pattern and started rising. The stock's RSI is now in the overbought zone, suggesting 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:

• Tata Motors has increased its five-year investment in Jaguar Land Rover (JLR) to £18 billion for FY24-FY28, up from £15 billion, to focus on electric and hybrid vehicle development. This move supports JLR's "Reimagine" strategy. Additionally, JLR will collaborate with China's Chery to produce electric vehicles under the Freelander brand in China. The increased investment, detailed in a JLR investor presentation, aims to enhance the development of flexible (internal combustion and electric) vehicle platforms.
  
  
• Axis Bank and its subsidiaries have approved increasing their stake in Max Life Insurance to 19.99% through a Rs 336 crore cash deal. This move is intended to strengthen Axis Bank's position in the life insurance sector, following earlier regulatory approvals for equity infusion in Max Life. Previously, Axis Bank and its subsidiaries held a 19.02% stake in Max Life. The decision, approved by the bank's Acquisitions, Divestments, and Merger Committee on June 19, 2024, will enhance the bank's investment in Max Life Insurance.
  
  
• Bharti Airtel has increased its stake in Indus Towers by 1%, bringing its total ownership to 48.95%. This acquisition, approved by a special committee, involved purchasing around 26.95 million equity shares through an all-cash block deal. Airtel aims to stabilize Indus amidst Vodafone Idea's financial troubles, with Chairman Sunil Mittal emphasizing the need for Vodafone Idea to clear its dues. Concurrently, Vodafone Plc plans to sell nearly 18% of its 21.05% stake in Indus Towers.

Stock name: Dabur India Ltd.

Pattern: Falling wedge pattern and retest

Time frame: Weekly

Observation:

After reaching its all-time high, the stock began a downward trend. Between September 2021 and June 2024, it formed a falling wedge pattern on the weekly chart. It broke out of this pattern in early June 2024 with significant trading volume. Although currently facing a slight retest, the stock maintains a healthy RSI. Technical analysis indicates that if it sustains its 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: Indian Energy Exchange Ltd.

Pattern: Double bottom pattern

Time frame: Weekly

Observation:

The stock has been declining since December 2021. From May 2023 to June 2024, the stock stabilised and formed a double bottom pattern on its weekly chart. The stock has registered a breakout from this pattern in the month of June 2024. This breakout was supported by significant trading volume. Following this breakout, the stock continues to rise, along with a favourable RSI level. Technical analysis suggests that if the stock maintains its momentum, it might 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:

• Tata Motors is reviving the Freelander as a made-in-China electric vehicle through its JLR subsidiary in partnership with Chery Automobile. The new EV will target China's market initially, with global expansion plans. This move aims to boost Tata Motors' electric profitability and compete with local brands. Production will be managed under the CJLR joint venture, leveraging Chery's technology and facilities.
  
  
• The Power Finance Corporation (PFC) board has approved a Rs 15,000 crore loan to Shapoorji Pallonji group companies. This loan will help the Mistry family, who own 18.37% of Tata Sons, to repay personal debts and fulfil financial obligations to creditors. The loan is secured by the cash flows from SP Group's real estate operations and the Mistry family's shares in Tata Sons.
  
  
• Vedanta Resources, the UK-based parent of India's Vedanta Ltd, plans to reduce its debt by $3 billion over the next three years. Facing multiple rating downgrades due to liquidity issues and default risks, the company will leverage liquidity from its $3.20 billion outstanding bonds to fund essential capital expenditure projects. Currently holding $6 billion in debt, Vedanta Resources has already reduced its debt by $3.70 billion in the past two years. The company aims to operationalize coal blocks and expand its steel and aluminium capacities, with $1.90 billion allocated for fiscal 2025.

Stock name: Dalmia Bharat Ltd.

Pattern: Double bottom pattern and retest

Time frame: Daily

Observation:

The stock has been declining since December 2023 but stabilized between April and June 2024, forming a double bottom pattern on its daily chart. On June 10, 2024, the stock has seen a significant breakout from the pattern with above-average trading volume. Although it has moved slightly upward since the breakout, it is currently retesting the breakout level. The RSI remains in a favourable zone. According to technical analysis, a rebound from the current level 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.

Stock name: Infosys Ltd.

Pattern: Double bottom pattern and retest

Time frame: Daily

Observation:

The stock has been declining since February 2024 but stabilized between April and June 2024, forming a double bottom pattern on its daily chart. It saw a significant breakout from this pattern on June 7, 2024, supported by high trading volume and a positive MACD breakout. However, the stock immediately faced a retest post-breakout. The RSI remains in a favourable position. According to technical analysis, a successful rebound from this retest 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:

• Vodafone Idea (Vi) plans to borrow Rs 23,000 crore in term loans and seeks Rs 10,000 crore in bank guarantees to bolster its telecom infrastructure and compete with Reliance Jio and Airtel. This move is aimed at securing the capital needed to stay competitive in a market previously at risk of becoming a duopoly. The joint venture between Vodafone Plc and Aditya Birla Group, which recently met lender demands by committing more equity, presented this loan proposal during a meeting with the State Bank.
  
  
• Coca-Cola India is seeking to sell a minority stake in its subsidiary, Hindustan Coca-Cola Beverages (HCCB), aiming to raise $800 million to $1 billion. Following PepsiCo's strategy of outsourcing bottling operations, Coca-Cola has approached several prominent Indian business families, including the Bhartia family of Jubilant Group, the Burmans of Dabur, the Parekhs of Pidilite Industries, and the promoter family of Asian Paints, for potential investments.
  
  
• Private credit funds, including Edelweiss Alternative Asset, anticipate Ambuja Cements will repay Penna Cement's high-cost debt ahead of schedule. Ambuja Cements, controlled by the Adani Group, acquired Penna Cement for ₹10,442 crore, aiming to lower borrowing costs and improve credit ratings. This acquisition will enable Ambuja Cements to refinance or repay Penna Cement's existing term loans and high-interest debt, including ₹400 crore owed to Edelweiss Alternative Asset.