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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.

Gifts are a heartwarming way to express love, appreciation, or celebrate milestones. However, understanding the tax implications of giving or receiving a gift in India is crucial to ensure compliance and avoid unexpected tax liabilities. India's gift tax rules have evolved significantly over time, and this blog post aims to simplify these rules for you.

How are gifts taxed?

Under current provisions, gifts received by an individual are taxed under the head "Income from Other Sources" at their regular income tax slab rate in the following scenarios:

1. Where any person receives, any sum of money, without consideration, the aggregate value of which exceeds fifty thousand rupees in a financial year, the whole of the aggregate value of such sum will be taxable in his hands;
2. Where any person receives any immovable property, without consideration, the Stamp Duty Value (SDV) of which exceeds fifty thousand rupees, the (SDV) of such property will be taxable;
3. Where any person receives any immovable property, for consideration, if the SDV of the property exceeds the consideration by higher of the two

(i) the amount of fifty thousand rupees; and

(ii) the amount equal to ten percent of the consideration;

The difference between the SDV and the actual consideration will be taxed as a gift in the hands of the buyer.

[Additional note: It is to be noted that if the SDV is more than consideration by 10% of the consideration (i.e. SDV > 110% of Actual Consideration) then the differential amount will be taxed as a gift in the hands of the buyer and capital gain in the hands of seller].

1. Where any person receives any other property (like gold, shares etc.), without any consideration and the Fair Market Value (FMV) of the property exceeds fifty thousand rupees, the FMV of such property will be taxable;
2. Where any person receives any other property for consideration, if the FMV of the property exceeds the consideration by fifty thousand rupees, the difference between the FMV and consideration will be taxable. 

However, there are some important exemptions related to gifting :

1. Gifts up to Rs. 50,000: Gifts received in a financial year (April 1st to March 31st) up to Rs. 50,000 are exempt from income tax, regardless of the source.

1. Gifts from Relatives: Gifts from specified relatives are exempt from tax, without any limit on the amount. Relatives include spouse, parents, siblings, grandparents, children, and a wider circle of family members.

The Income Tax Act, 1961 defines "relative" for the purpose of gift tax exemption. The following individuals are considered relatives, and gifts received from them are exempt from tax in India, regardless of the amount:

• in case of an individual

1. spouse of the individual;
2. brother or sister of the individual;
3. brother or sister of the spouse of the individual;
4. brother or sister of either of the parents of the individual;
5. any lineal ascendant or descendant of the individual;
6. any lineal ascendant or descendant of the spouse of the individual;
7. spouse of the person referred to in items (B) to (F); and

• in case of a Hindu undivided family, any member thereof;

1. Gifts received from or by any trust or institution registered under section 12A or section 12AA or section 12AB; (generally charitable & religious trusts are registered under this section)
2. Gifts received on the occasion of the marriage of the individual; or
3. Gifts received under a will or by way of inheritance; or
4. Gifts received in contemplation of death of the payer or donor, as the case may be; or
5. Assets received in event of partition of a Hindu Undivided Family (HUF).
6. Gifts received from an individual by a trust created or established solely for the benefit of relative of the individual;

Gift Planning Strategies

Spreading Out Large Gifts

If you plan to give a significant amount, consider spreading it over multiple financial years to keep each portion below the Rs. 50,000 exemption limit.

Utilizing Relative Exemptions

You can consider taking advantage of the tax-free status of gifts from relatives. You can consider transferring assets (like stocks or property) to these relatives to potentially reduce your future tax burden when these assets start yielding income or when they are eventually sold.

Gifting to Charity

Donations to registered charitable institutions are exempt from tax. This strategy can help you reduce your taxable income while supporting a worthy cause.

Important Considerations

Maintaining Documentation

It's crucial to maintain records of gifts received, especially from non-relatives, to avoid any confusion during tax filing. Be mindful that large gifts might attract scrutiny from the tax department. It's advisable to ensure the genuineness of the gift and the donor's ability to justify it.

Beware of Clubbing Provisions

While trying to use the benefits under the gifting sections, you should be diligent to transfer the amounts to only specified relatives else there could be repercussions of clubbing provision where even after gifting the amount, the income generated via that asset will be taxed in your hands.

Some examples of clubbing are as under:

1. Any income arising or accruing to your minor child where the child includes both step child and adopted child. The clubbing provisions apply even to minor married daughters. However, If a minor child’s income is clubbed in the hands of the parent, then an exemption of Rs. 1,500 is allowed to the parent (This is applicable only if the parent opts for the old tax regime).
2. Transfer of assets transferred directly or indirectly to your daughter in-law by you for inadequate consideration

Conclusion

Understanding gift tax rules can help you navigate gifting situations with clarity. Remember, this blog is for informational purposes only. For specific tax advice, consult a professional.

By staying informed about the tax implications of gifts, you can ensure that your acts of generosity do not lead to unexpected tax liabilities. Happy gifting!

Stock name: Schaeffler India Ltd.

Pattern: Double top pattern and retest

Time frame: Daily

Observation:

The stock experienced a significant rise starting in March 2024. Recently, it stabilized and formed a double top pattern on its daily chart. A breakout from this pattern occurred on July 12, 2024, with above-average trading volume. Following the breakout, the stock moved downward but currently it is retesting the breakout level. At present the RSI level of the stock remains below 50. As per technical analysis, if the stock resumes its downward momentum after the retest, 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: Caplin Point Laboratories Ltd.

Pattern: Cup and handle pattern

Time frame: Daily

Observation:

The stock has trended upward since April 2023. From March to July 2024, it formed a cup and handle pattern on its daily chart and is nearing the breakout line. The RSI is currently in a favourable zone. According to technical analysis, if the stock breaks out from the pattern with strong 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:

• India's GST structure is set to move towards three tax rate slabs, as announced by CBIC chairman Sanjay Kumar Agarwal. The GST Council will finalize this plan in its next meeting. Additionally, a customs duty overhaul is planned to simplify the system and reduce disputes. The online gaming sector's GST contribution is increasing. The changes aim to streamline India's indirect tax structure, minimizing tax slabs and overhauling existing classifications under both GST and customs.
  
  
• Private life insurers in India are adjusting to new IRDAI regulations requiring surrender value from the first year on non-participating policies. HDFC Life, ICICI Prudential Life, and SBI Life are modifying commission structures and product mixes to protect margins. HDFC Life is restructuring payouts, ICICI Prudential Life is focusing on trial-based commissions, and SBI Life is maintaining its current structure. Despite these changes, insurers remain confident in sustaining growth, though some experts are sceptical about maintaining current margins amid increased competition and regulation.
  
  
• The Power Ministry announced a plan requiring a ₹6.67 lakh crore investment to meet electricity demand by 2031-32. The Central Electricity Authority (CEA) determined that coal and lignite installed capacity needs to reach 283 GW, up from the current 217.5 GW. The government aims to add at least 80 GW of coal-based capacity by 2031-32 while also boosting non-fossil fuel-based electricity generation to 50% by 2030, up from the current 45.5%.

Stock name: Berger Paints India Ltd.

Pattern: Inverse Head and shoulders pattern

Time frame: Daily

Observation:

The stock experienced a downward trend from September 2023 but stabilized from April to July 2024, forming an inverse head and shoulders pattern on its daily chart. Although it hasn't yet broken out from the pattern, it is just below the breakout line. The current RSI level is favourable. Technical analysis suggests that if the stock breaks out with strong 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: Linde India Ltd.

Pattern: Triple top pattern and retest

Time frame: Daily

Observation:

The stock experienced a significant rise starting in March 2024. Recently, it stabilized and formed a triple top pattern on its daily chart. On July 23, 2024, it broke out from this pattern. After the breakout, the stock dipped slightly but is now retesting the breakout level. With an RSI around 40, the stock shows weaker strength. As per technical analysis, if the stock resumes its 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.

News for the day:

• In an interview with ET, Tuhin Kanta Pandey, Secretary of the Department of Investment and Public Asset Management (DIPAM), stated that authorities are in the final stage of identifying suitable bidders for a majority stake in IDBI Bank. The strategic sale of the state-run lender is expected to conclude this fiscal year. Pandey emphasized that the government will adopt a "calibrated disinvestment strategy" without setting specific "big-bang targets," ensuring that state-run firms continue to create value.
  
  
• Nissan, with Renault, plans to launch nearly half a dozen SUVs in India, starting with the imported X-Trail. This will be followed by two mid-size SUVs. India will be the sole production hub for half of these new models by 2026, including an affordable EV. Nissan aims to boost annual sales to 35,000 units and expand exports of the SUV Magnite to 40 countries by the end of this fiscal year. With a $600 million investment in India, the company is also exploring electric car launches and other vehicles from its global portfolio.
• The government has cancelled a planned ₹30,000 crore equity infusion for Indian Oil, Bharat Petroleum, and Hindustan Petroleum due to their record profits in FY24. Initially reduced to ₹15,000 crore, this support has now been fully scrapped. Despite previous losses driven by the oil crisis, these companies posted combined profits of around ₹81,000 crore in FY24. Plans for filling strategic oil reserves have also been cancelled. Meanwhile, ONGC and GAIL are focusing on achieving net-zero emissions.

Stock name: Polycab India Ltd.

Pattern: Head and shoulders pattern

Time frame: Daily

Observation:

The stock experienced a significant rally in 2024. Recently, it stabilized and formed a head and shoulders pattern on its daily chart. Around July 19, 2024, it broke out from this pattern with above-average trading volume. Currently, the stock's RSI is very low. According to technical analysis, if the stock maintains its current momentum, it 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: Bayer Cropscience Ltd.

Pattern: Flag and pole pattern

Time frame: Daily

Observation:

The stock has seen a significant upward movement in the month of June 2024. In July, it stabilized and formed a flag and pole pattern on its daily chart. Currently, the stock is consolidating and has yet to break out from this pattern. This consolidation has also helped the RSI levels to drop from the overbought zone to a more favourable range. According to technical analysis, a breakout with strong 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:

• The Indian government's budget focuses on infrastructure, rural development, and tax savings, expected to boost rural demand for consumer goods and two-wheelers. Job creation aims to increase consumption in smaller cities, despite higher capital gains taxes potentially limiting spending. FMCG executives see the budget as increasing disposable income and demand. FMCG stocks surged, with significant gains for ITC, Tata Consumer Products, Godrej Consumer Products, and Dabur India. Enhanced rural development and road connectivity allocations support this positive outlook.
  
  
• Paytm's parent company, One 97 Communications, has partnered with Axis Bank to offer point of sales (POS) solutions and card payment machines to banks and merchants. Paytm's EDC devices provide store management services like inventory management and CRM. This partnership aims to enhance transaction efficiency and customer engagement, benefiting both companies. Axis Bank sees this as a way to expand their merchant acquiring portfolio and provide more payment solutions. This collaboration is expected to extend Paytm's technology reach and support merchants' business growth.
• United Spirits is investing in new growth areas by acquiring stakes in non-alcoholic and coffee-based alcohol companies. The company will acquire 15% of V9 Beverages, which sells India's first distilled non-alcoholic spirits like Sober Gin, Sober Rum, and Sober Whiskey. Additionally, United Spirits will purchase 25% of Indie Brews and Spirits, the maker of Quaffine, India's first cold brew coffee liqueur. This strategy aligns with United Spirits' goal of exploring new growth opportunities.