Blog posts of '2024' 'September'

As we celebrate the auspicious arrival of Lord Ganesh, the god of new beginnings, a new company has made a noteworthy debut on the stock markets—Premier Energies Ltd, a name making headlines today. The company, with 29 years of experience in the solar industry, is primarily known as an integrated solar cell and solar module manufacturer.

Business Overview:

Premier Energies Ltd operates in various segments within the solar industry:

1. Manufacturing of Solar Photovoltaic (PV) Cells: These cells are the building blocks for solar modules, converting sunlight into electricity.
2. Manufacturing of Solar Modules: The company manufactures complete solar modules, which can be used in various applications.
3. Customized Solar Products: Premier Energies offers bespoke solar solutions tailored to customer needs, such as customized solar tiles.
4. EPC Projects Execution: The company undertakes Engineering, Procurement, and Construction (EPC) projects, providing end-to-end solutions in the solar sector.
5. Operation & Maintenance Services: They offer maintenance services for EPC projects, ensuring the optimal performance of solar installations.
6. Independent Power Production: Premier Energies also operates as an independent power producer, generating electricity from its solar assets.

Listing Performance:

Premier Energies Ltd’s IPO was priced at ₹450 per share, raising ₹2,830.40 crores, including a fresh issue of ₹1,291.40 crores. The IPO was heavily oversubscribed by 75 times, reflecting strong investor interest. The stock made a stellar debut, listing at ₹990 per share, a significant 120% premium over the issue price. It has since soared to ₹1,159.70, showcasing a remarkable performance within just four days of listing and creating a buzz in the market.

Post-Listing Scenario:

The company’s impressive market performance reflects the positive sentiment surrounding the solar industry, driven by increasing electricity consumption, a shift towards renewable energy sources, and supportive government policies. The solar sector, in particular, appears promising as the world transitions away from non-renewable energy.

What’s Next?

However, despite the current euphoria, the stock is trading at a high Price-to-Earnings (P/E) multiple of 225, suggesting that it may be overvalued at present levels. A rational approach for investors would be to add the stock to their watchlists and wait for market excitement to subside, allowing for a more reasonable entry point. As the broader industry dynamics remain favorable, Premier Energies Ltd is undoubtedly a stock to watch closely for potential opportunities in the future.

Stock name: Century Plyboards (India) Ltd.

Pattern: Cup and handle pattern

Time frame: Daily

Observation:

The stock has been on an upward trajectory since the post-Covid period. Between February 2024 and August 2024, it consolidated and formed a cup and handle pattern on its daily chart. On 26 August 2024, the stock achieved a strong breakout, supported by solid trading volumes. In the subsequent sessions, it successfully held the breakout level. According to technical analysis, if the stock can build on this breakout momentum, it may experience further upward movement. It's advisable to look for additional confirmations, such as RSI levels and the MACD indicator.

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: Craftsman Automation Ltd.

Pattern: Cup and handle pattern and retest

Time frame: Daily

Observation:

The stock has been trending upward since its listing. Between December 2023 and August 2024, it formed a cup and handle pattern on the daily chart. On 26 August 2024, the stock broke out of this pattern, with the breakout candle accompanied by significant trading volume. After the breakout, the stock experienced a brief retest. Currently, the stock has rebounded successfully and resumed its upward momentum. Based on technical analysis, the stock may continue its upward movement. It's advisable to look for additional confirmations, such as RSI levels and the MACD indicator.

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: Jai Balaji Industries Ltd.

Pattern: Inverse head and shoulders pattern

Time frame: Daily

Observation:

The stock has been on a downward trend since March 2024. Between May 2024 and September 2024, it stabilized and formed an inverse head and shoulders pattern on its daily chart. On September 3, 2024, the stock broke out of this pattern, followed by strong upward momentum in the next trading session. According to technical analysis, if the current momentum continues, the stock may experience further gains. It's advisable to look for additional confirmations, such as RSI levels and the MACD indicator.

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: Prism Johnson Ltd.

Pattern: Cup and handle pattern

Time frame: Daily

Observation:

Since the post-COVID period, the overall trend for the stock has been positive. Recently, it consolidated and formed a cup and handle pattern on its daily chart between July 2024 and September 2024. On September 3, 2024, the stock broke out of this pattern, supported by substantial trading volume. In the following session, the upward movement continued with even greater volume. According to technical analysis, if the stock sustains its breakout momentum, it may see further upward movement. It's advisable to look for additional confirmations, such as RSI levels and the MACD indicator.

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: Radico Khaitan Ltd.

Pattern: Cup and handle pattern

Time frame: Daily

Observation:

The stock has shown a consistent upward trend. Between June and August 2024, it formed a cup and handle pattern on the daily chart, breaking out on August 30, 2024. Since the breakout, the stock has held its level. If this momentum continues, the stock may see further upward movement according to technical analysis. It's advisable to look for additional confirmations, such as RSI levels and the MACD indicator.

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: JM Financial Ltd.

Pattern: Cup and handle pattern

Time frame: Daily

Observation:

The stock has been trending upward since March 2023. From January to August 2024, it stabilized and formed a cup and handle pattern on its daily chart. A breakout occurred on August 29, 2024, accompanied by significant volume. The stock has since continued its upward movement with strong volume. If the momentum persists, then as per technical analysis the stock may move further upwards. It's advisable to look for additional confirmations, such as RSI levels and the MACD indicator.

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: Safari Industries (India) Ltd.

Pattern: Flag and pole pattern

Time frame: Daily

Observation:

The stock experienced a sharp rise in August 2024, followed by a consolidation phase, forming a flag and pole pattern on the daily chart. On August 30, 2024, it broke out of this pattern with significant trading volume and sustained the breakout the following day. If the stock maintains this momentum, it may continue to move higher according to technical analysis. It's advisable to look for additional confirmations, such as RSI levels and the MACD indicator.

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: Whirlpool of India Ltd.

Pattern: Flag and pole pattern

Time frame: Daily

Observation:

On the daily chart, the stock experienced a sharp rise from June 5 to June 27, 2024, followed by consolidation until August 29, 2024, forming a flag and pole pattern. The stock broke out of this pattern on August 29 with significant trading volume and has since sustained its breakout levels, moving upwards. If the momentum continues, the stock may climb higher according to technical analysis. It's advisable to look for additional confirmations, such as RSI levels and the MACD indicator.

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

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

Stock name: Welspun Living Ltd.

Pattern: Resistance breakout pattern

Time frame: Monthly

Observation:

The stock reached its previous high around September-October 2021 before declining. Since November 2023, it attempted to move upward multiple times but faced resistance at the September-October 2021 level. In July 2024, the stock broke through this resistance with strong trading volume, and the upward trend continued with the August 2024 candle. According to technical analysis, if the stock maintains its current momentum, it may see further upward movement. It's advisable to look for additional confirmations, such as RSI levels and the MACD indicator.

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: Emami Ltd.

Pattern: Resistance breakout pattern

Time frame: Monthly

Observation:

The stock reached its previous high in 2015, forming resistance around the 680 level. In June 2024, it broke through this resistance with strong trading volume, and the upward trend continued in July 2024. The stock was able to sustain the level in August 2024. According to technical analysis, if the stock maintains its momentum, it may move further upward. It's advisable to look for additional confirmations, such as RSI levels and the MACD indicator.

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.