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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.

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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.

The upcoming 2024 Union Budget of India, set to be presented by Finance Minister Nirmala Sitharaman, is generating significant anticipation among industry leaders, economists, and the general public. Scheduled for the latter part of July 2024, this budget will be the first of the third term of the NDA government led by Prime Minister Narendra Modi, commonly referred to as the Modi 3.0 government. The 2024-25 Budget is expected to outline the Modi 3.0 government's economic agenda, which likely includes initiatives to fast-track reforms aimed at transforming India into a $5-trillion economy in the near future and achieving 'Viksit Bharat' by 2047. As the nation navigates economic recovery and growth post-pandemic, this budget is anticipated to address key issues and provide a comprehensive financial roadmap for the upcoming year. Here’s an in-depth look at what to expect from the 2024 budget based on pre-budget consultations and expert opinions.

Industry Consultations and Stakeholder Engagement: In preparation for the budget, Finance Minister Nirmala Sitharaman is scheduled to hold pre-budget meetings with industry stakeholders on June 20, 2024. Prior to this, an official meeting with the Revenue Secretary will take place on June 18. These consultations are crucial for the government to gather input from various sectors, understand their challenges, and incorporate their suggestions into the budget. Key discussion areas are likely to include tax policies, incentives for startups, infrastructure development, and measures to boost manufacturing and exports.

Economic Growth and Fiscal Consolidation: Economic growth and fiscal consolidation are expected to be central themes in the 2024 budget. With Prime Minister Modi's government entering its third term, there is an emphasis on balancing populist spending with rigorous economic reforms. The budget is likely to focus on stimulating economic growth through increased investment in infrastructure, promoting digital economy initiatives, and enhancing the ease of doing business. Concurrently, measures to control the fiscal deficit and public debt will be critical to ensuring sustainable economic health.

Tax Reforms and New Income Tax Rules: A significant expectation from the budget is the introduction of new income tax rules. There is speculation that the government might discontinue the old tax regime in favour of a simplified tax structure, although it remains to be seen if such a drastic change will be implemented immediately in the first budget of the new government. The goal would be to simplify tax compliance for individuals and businesses, broaden the tax base, and enhance revenue collection. Potential changes could include adjustments to tax slabs, incentives for savings and investments, and measures to reduce tax evasion.

Infrastructure Development: Infrastructure development is anticipated to receive substantial attention in the 2024 budget. The government is expected to allocate significant funds for the expansion of road networks, railways, and urban infrastructure. Investments in renewable energy projects and advancements in digital infrastructure, such as the 5G rollout and rural broadband connectivity, will also be prioritized. These initiatives are essential for economic growth as well as for improving connectivity and access to services across the country.

Social Welfare and Healthcare: The budget is likely to emphasize social welfare programs, particularly in healthcare and education. Enhanced funding for public health infrastructure, the availability of essential medicines, and investment in medical research are expected to be key components. Education reforms, including the integration of digital learning tools and vocational training programs, will aim to equip the workforce with relevant skills. Increased allocations for social security schemes targeting vulnerable sections of society will help ensure a robust safety net.

Environmental Sustainability: Environmental sustainability will be a significant focus of the 2024 budget. The government is expected to introduce policies aimed at combating climate change, reducing carbon emissions, and promoting green energy. Investments in solar and wind energy, initiatives to improve energy efficiency, and subsidies for environmentally friendly practices will be central to these efforts. Incentives for businesses and individuals to adopt green technologies are also anticipated.

Push in Rural Spending: There has been a noticeable pattern in consumption recovery where wealthier individuals are spending more, while rural consumption remains low, with demand for basic and affordable goods still subdued post-pandemic. This indicates that lower-income individuals, who were hit hardest by the pandemic, haven't yet regained their purchasing power. Limited financial aid for vulnerable groups and irregular weather patterns impacting rural earnings have exacerbated this gap. To address this disparity, the government is likely to boost spending in rural areas. Increased investment in rural infrastructure, agriculture, and social welfare programs will be crucial to reviving demand and ensuring balanced economic growth.

Conclusion: The 2024 Union Budget of India is poised to address critical economic and social challenges while setting the stage for sustainable growth. By focusing on economic stability, infrastructure development, tax reforms, social welfare, environmental sustainability, and boosting rural spending, the government aims to create a resilient and prosperous future for the country. In addition to these, it will be also be crucial to see how the biggest ever RBI dividend of Rs. 2.1 Lakh Crore is utilised by the government. The key question is whether the ₹2.1-lakh crore surplus should be fully used for fiscal consolidation, partly allocated to social welfare schemes given the new coalition government, or entirely invested in boosting public infrastructure. As we await the detailed announcements, it is clear that this budget will play a pivotal role in shaping India's economic trajectory in the coming years.