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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.

A Patient Investor

Let's meet Mr.Chandu, a long-term investor who bought 100 shares of Reliance Industries in 1977. Fast forward to today, and Mr. Chandu's holdings have grown to a remarkable 1280 shares with a market value of around Rs. 35-40 lakhs. But the story doesn't end here.

The Bonus Bonanza

Reliance Industries has a history of rewarding its loyal shareholders with bonus issues. If the company's board approves the proposed 1:1 bonus issue on September 5th, Mr.Chandu's 1280 shares will magically transform into 2560 shares. With the current share price hovering around Rs. 3000, you might think that Mr. Chandu's investment would be doubled, worth well over Rs. 75 lakhs (Rs.3000 * 2560 shares) ! But wait! A bonus issue does not double your wealth. After a bonus, the share price adjusts itself and corrects by the bonus amount, at least theoretically. So, assuming the stock corrects 50% (because it is a 1:1 bonus), the value of Mr.Chandu’s holding would still be the same Rs. 35-40 lakhs.

However, Mr.Chandu isn't disheartened. He understands that bonus issues can offer benefits beyond immediate financial gains. Increased liquidity and the positive sentiment among investors can be advantageous for both Reliance Industries and its shareholders like Mr.Chandu.

CAGR and Dividends

Over the years, Reliance Industries has delivered a consistent Compound Annual Growth Rate (CAGR) of around 19%, where the broader market indexes like Nifty deliver around 12-13%. This impressive performance is a testament to the company's sound business strategies and strong leadership.

In addition to capital appreciation, Mr.Chandu has also received a significant amount of dividend income over the years. Approximately Rs. 1,35,600 has been added to his investment kitty through dividends alone.

The Power of Patience

Mr.Chandu's story is a powerful reminder of the long-term benefits of investing in quality stocks. By staying patient and holding onto his Reliance shares through thick and thin, he has reaped substantial rewards.

Conclusion

Reliance Industries has not only been a financial success story but has also played a pivotal role in India's economic growth. For investors who have been part of this journey, the rewards have been truly bountiful.

Remember: This blog post is for informational purposes only and does not constitute financial advice. It's always recommended to consult with a financial advisor before making any investment decisions.

Stock name: Abbott India Ltd.

Pattern: Cup and handle pattern

Time frame: Daily

Observation:

The stock has experienced significant upward movement since December 2023. From March to August 2024, it formed a cup and handle pattern on the daily chart, breaking out on 22 August 2024 with substantial volume. Following the breakout, the stock has continued to rise. Technical analysis suggests that if the current momentum is maintained, 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: Godrej Industries Ltd.

Pattern: Cup and handle pattern

Time frame: Daily

Observation:

The stock has shown strong upward movement since November 2022. Between May and August 2024, it formed a cup and handle pattern on the daily chart and broke out on 27 August 2024 with significant volume. The stock has sustained the breakout with slight upward movement. As per technical analysis, if the stock is able to maintain the 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.

News for the day:

• Singapore Airlines (SIA) has received approval from the Indian government for its foreign direct investment (FDI) in the merger between Vistara and Air India, which was announced in November 2022. This merger, aimed at creating a dominant full-service airline, will see SIA hold a 25.1% stake in the combined entity. The merger, which has also received anti-trust and regulatory clearances, is expected to be completed by the end of 2024, pending compliance with Indian laws.
  
  
• Starting November 1, 2024, the Indian government will remove the cap on sugar diversion for ethanol production, allowing the use of cane juice, syrup, and various molasses types. Distilleries are also permitted to purchase up to 2.3 million metric tons of rice from the Food Corporation of India for ethanol production. This policy aims to boost renewable energy while ensuring stable sugar availability. The Department of Food and Public Distribution, along with the Ministry of Petroleum and Natural Gas, will monitor the impact on sugar supplies to maintain domestic availability.
• Despite the excitement among retail investors over Reliance Industries' (RIL) bonus share announcement, the company's Annual General Meeting (AGM) did not provide any new catalysts for brokerages to raise target prices. While the listing of RIL's consumer-facing businesses, Reliance Jio and Reliance Retail, could lead to a re-rating of India's most valuable stock, Mukesh Ambani made no mention of this during his AGM speech, leaving target prices unchanged.

Stock name: Welspun Corp Ltd.

Pattern: Flag and pole pattern

Time frame: Daily

Observation:

The stock began a strong upward trend on June 25, 2024, followed by a consolidation phase from July 12 to August 12, 2024. This created a flag and pole pattern on the daily chart. On August 12, 2024, the stock broke out with substantial volume, and on August 16, it confirmed the uptrend with a large green candle, again supported by high volume. According to technical analysis, if this momentum persists, the stock may continue to rise further. 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: LTIMindtree Ltd.

Pattern: Cup and handle pattern

Time frame: Daily

Observation:

Since May 2022, the stock has been trending upward. Between January and August 2024, it developed a cup and handle pattern on the daily chart. On August 28, 2024, the stock experienced a significant breakout with high volumes. As per technical analysis, if this momentum continues, the stock may rise further. 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.

News for the day:

• The U.S. has raised concerns about linking domestic fast payment systems, like India’s UPI, for global transactions. Federal Reserve's Christopher J. Waller cautioned that such interlinking could increase risk management burdens for banks and may not necessarily lead to faster or cheaper payments. While India supports this move to reduce remittance costs, Waller emphasized potential trade-offs and uncertainties, particularly regarding legal, compliance, and operational challenges.
  
  
• Trent, led by Noel Tata, is set to open its first overseas Zudio store in Dubai next month, targeting the Indian diaspora. The store will be located in Silicon Oasis Mall. Zudio, which now contributes over a third of Trent's revenue, has seen significant growth in India. Future expansion will depend on the store's performance in Dubai.
  
  
• L&T Technology Services (LTTS) aims to grow its three new verticals—mobility, sustainability, and tech—into $1 billion revenue segments. Currently, these verticals generate $416 million, $354 million, and $411 million, respectively. While LTTS hasn't set a timeline for this goal, it plans to drive growth through large deals and technology investments. Despite margin improvements in mobility and sustainability, tech margins have declined, and the company is working to improve them through increased offshoring and a higher mix of fresh talent.

Stock name: Bharat Dynamics Ltd.

Pattern: Double top pattern

Time frame: Daily

Observation:

The stock experienced a rapid rise starting in February 2024 but cooled off between May and August 2024, forming a double top pattern on its daily chart. It has not yet broken out of this pattern and is currently hovering near the breakout line, which now serves as support. The RSI is below 40, indicating bearish momentum. According to technical analysis, a significant breakout with strong momentum may lead to further downward movement.

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

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

Stock name: Jammu & Kashmir Bank Ltd.

Pattern: Head and shoulders pattern and retest

Time frame: Daily

Observation:

After the post-COVID market crash, the stock recovered well and trended upward. Between September 2023 and July 2024, it formed a head and shoulders pattern on the daily chart, breaking out on July 8, 2024, with strong volume. Following the breakout, the stock underwent two significant retests and is currently moving along the breakout line. It has completed its second retest and is now trending downward. The stock has also shown a bearish signal on the MACD and has a low RSI level. According to technical analysis, if this momentum continues, the stock may move further downwards.

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 plans to source battery packs for its electric vehicles from China's Octillion Power Systems to address performance issues and diversify its supply chain, according to a report. Currently, Tata Motors sources batteries from Tata AutoComp Systems. The first vehicle to feature Octillion batteries will be the Curvv.ev. Despite a decline in EV sales in India, with a 2.92% drop in July, Tata Motors controls 68% of the market and recently became the first Indian company to rank among the top ten most valued global automotive firms.
  
  
• Shriram Finance, an Indian non-banking financial company, plans to raise between $1.25 billion and $1.5 billion from international markets in the current fiscal year, according to CEO Y.S. Chakravarti. The funds will be sourced through a combination of loans and bonds, aiming to diversify the company's borrowings. This fundraising effort follows a directive from India's central bank, which now requires lenders to hold more capital for loans to non-banking financial companies (NBFCs), increasing the cost of securing funds.
  
  
• Indus Towers is set to become a subsidiary of Bharti Airtel after Airtel's stake in the company increases to 50.005% following a buyback exercise. The buyback involves 56.7 million equity shares priced at ₹10 each. Once the process is complete, Indus Towers will officially become a subsidiary of Airtel under the Companies Act, 2013. On the day of the announcement, Indus Towers' shares rose 1% to ₹437.40, while Airtel's shares also saw a slight increase, closing at ₹1,522.50 on the BSE.

Stock name: Punjab National Bank

Pattern: Head and shoulders pattern and retest

Time frame: Daily

Observation:

The stock has been on an upward trend since the COVID market crash. From February to August 2024, it formed a head and shoulders pattern on the daily chart, with a breakout on August 5th, supported by slightly above-average trading volume and a bearish MACD. However, the stock has faced a retest immediately after the breakout, indicating that it requires additional confirmation. According to technical analysis, if the stock gains downward 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: ITC Ltd.

Pattern: Cup and handle pattern

Time frame: Daily

Observation:

Since the post-COVID market crash, the stock has generally trended upward. Recently, it has stabilized, forming a cup and handle pattern on the daily chart from January to August 2024. The stock has yet to break out from this pattern and is currently hovering near the breakout line, which may act as resistance. The RSI levels are currently in a favourable zone. According to technical analysis, if the stock achieves a breakout with substantial 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:

• Adani Power has incorporated a new subsidiary, Adani Power Middle East Ltd., in Abu Dhabi to invest in the power and infrastructure sectors. The subsidiary, fully owned by Adani Power, has an authorized capital of $27,000. This move aligns with Adani Power’s strategy to expand its presence in the thermal power sector, both in India and internationally. Recently, Adani Power signed an ₹11,000 crore contract with Bharat Heavy Electricals Limited (BHEL) to develop three supercritical thermal power projects in Rajasthan and Madhya Pradesh, each with a capacity of 2x800 MW.
  
  
• Hindustan Unilever (HUL) has been issued a tax demand of ₹962.75 crore by the Income Tax Department for failing to deduct Tax Deducted at Source (TDS) on a ₹3,045 crore payment made to acquire intellectual property rights from GlaxoSmithKline (GSK). The demand includes ₹329.33 crore in interest. The issue relates to the acquisition of the Horlicks brand and other health drink brands from GSK. HUL plans to appeal the order, asserting that it has a strong case based on judicial precedents and intends to recover the tax from relevant parties.
  
  
• Vedanta Ltd has assembled a ₹30,000 crore war chest from various funding sources, including recent fundraises and existing cash reserves, to reduce debt and drive growth. The funds will support debt reduction, transformational projects, and a planned demerger aimed at unlocking value and attracting major investments into its independent businesses.

Stock name: Piramal Enterprises Ltd.

Pattern: Double bottom pattern and retest

Time frame: Daily

Observation:

The stock had been in a downward trend but stabilized between December 2023 and July 2024, forming a double bottom pattern on its weekly chart. In July 2024, it registered a breakout from this pattern, supported by average trading volume. Although there was some upward movement post-breakout, the stock experienced a significant retest. Currently, it has rebounded from the retest with a strong RSI. According to technical analysis, if the stock can sustain 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.

Stock name: BLS International Services Ltd.

Pattern: Cup and handle pattern and retest

Time frame: Daily

Observation:

The stock has demonstrated an upward trend, forming a cup and handle pattern on its daily chart from February 2024 to August 2024. On August 6, 2024, it registered a breakout with significant trading volume, supported by a bullish MACD indicator. However, after the breakout, the stock experienced a retest and briefly closed below the breakout line. Currently, it has rebounded from the retest and is moving upward again. According to technical analysis, if the stock maintains its current momentum, it may see further gains.

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:

• RBI Governor Shaktikanta Das announced that the Unified Lending Interface (ULI), a new platform for frictionless credit, is in its pilot stage and will be launched nationwide soon. The ULI aims to speed up the credit process, especially for rural borrowers, by streamlining digital information flow. Das shared this update at the Global Conference on Digital Public Infrastructure in Bangalore, while also cautioning financial institutions about the risks of Artificial Intelligence.
  
  
• Tata Sons, the holding company of the $410-billion Tata Group, has repaid over ₹20,000 crore in debt, allowing it to remain a private, unlisted company. This move comes after the RBI classified Tata Sons as an NBFC-Upper Layer (NBFC-UL) in 2022, which would have required it to list its shares within three years. By reducing its debt significantly, Tata Sons has avoided this requirement and has offered to surrender its certificate of registration to the RBI.
  
  
• Jio Financial Services Ltd has received approval from the Department of Economic Affairs to raise its foreign investment limit to 49% of its equity share capital. Currently, foreign investors hold 17.55% of the company's shares. Despite a 6% decline in net profit in the first quarter ending June, Jio Financial has recently introduced new services like mutual fund loans and auto insurance. The company, a non-banking arm of Reliance Industries Ltd, was demerged in July 2023.