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What is DTAA?

Often, income that originates in India is taxed within the country. However, Non-Residents of India, who are residents of another country, may find that the same income is taxed again in their country of residence, resulting in double taxation. To prevent this, India has established Double Taxation Avoidance Agreements (DTAA) with over 90 countries. These agreements aim to ensure that income is taxed only once, specifying how, where, and at what rate the income will be taxed. The primary purpose of DTAA is to provide clear guidelines on taxation, avoiding the burden of double taxation on the same income.

What are the ‘tie-breaker’ rules?

Like any other tax law, the DTAA also places a major emphasis on the residential status of a person. Generally, all the DTAA mentions their scope as – This agreement shall apply to the residents of one or both the countries. However, to claim the benefit of DTAA, you must be a resident of one country and the income should be generated in the other country. So basically, you cannot be a resident in both the countries. Now generally the DTAA follows the residential classification of the respective country. Say for example, as per the respective laws you are a resident in USA and a Non-Resident in India, then it becomes a very easy for the further process. However, if by definition of the local laws you have a residential status in both the countries then what? Here comes the ‘tie-breaker’ rules of DTAA. You can consider this as a super over or a penalty shootout arranged by DTAA to decide the final winner (which country can claim you as a resident). Let’s understand how this game is played:

If there is a situation where an individual is resident of both the countries, then the residential status will be determined as follows:

1. The individual will be resident in the country where he has a permanent home available. In case he has permanent home in both the countries, he will be deemed to be resident of the country with which his personal and economic relations are closer (centre of vital interests).
2. If the country where he has his main interests can't be determined, or if he doesn't have a permanent home in either country, he will be considered a resident of the country where he has a regular place to stay.
3. If he has a regular place to stay in both countries or in neither, he will be considered a resident of the country of which he is a national.
4. If he is a national of both countries or neither, the authorities of the contracting countries will resolve the issue by mutual agreement.

(Ok this is really too much. In this case let the competent authorities take charge)

(Please note that these are general tie-breaker rules, and specific DTAAs between countries may have differing provisions. This information is provided for conceptual understanding only and should not be considered professional advice.)

What are the documents required and the procedure to claim benefit of DTAA in India?

An individual will need the following documents/details:

1. PAN card, if available
2. Proof of residential address in your residential country
3. Duration of residential status as stated in the TRC (Tax Residency Certificate, this is issued by the local tax authorities)
4. Taxpayer status (Individual in our case)
5. Proof of nationality
6. TIN or any other unique tax identification number in country of residence
7. Digital Signature Certificate, if available or a functioning Indian mobile number

Now the second question, how to claim the benefit. You can claim the benefit of DTAA in two ways: at the time of withholding tax or when filing your income tax return (ITR).

1. At Withholding of tax:
   1. Claiming the benefit at the time of withholding taxes prevents extra tax from being withheld, avoiding working capital blockage.
   2. You must file Form 10F with the Indian tax department, which can be done online.
   3. Submit Form 10F to the tax deductor, who will then apply the DTAA tax rates instead of regular Indian tax rates.

2. At Income Tax Return (ITR) filing:
   1. Indian tax laws allow you to choose the more beneficial tax rate between regular laws and DTAA rates.
   2. Compare the tax rates and choose the beneficial one when filing your ITR.
   3. If you missed claiming the DTAA benefit at the time of withholding taxes, you can get a refund of the extra tax withheld when you file your ITR.

(These steps provide a general understanding of the DTAA claim process, but specific requirements and procedures may vary. It is advisable to consult a professional for detailed guidance.)

Stock name: Cyient Ltd.

Pattern: Double bottom pattern and retest

Time frame: Daily

Observation:

The stock has been declining since December 2023 but formed a double bottom pattern from April to August 2024 on its daily chart. It broke out of this pattern on August 20, 2024, with strong trading volume, leading to some upward movement. Currently, the stock is undergoing a low-volume retest, which has cooled the RSI from overbought levels. According to technical analysis, if the stock rebounds from this retest with good 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: Archean Chemical Industries Ltd.

Pattern: Cup and handle pattern and retest

Time frame: Daily

Observation:

Since its listing in November 2022, the stock has been on an upward trend. Recently, from February to August 2024, it formed a cup and handle pattern on its daily chart, breaking out on August 22, 2024, with strong trading volume. However, the stock is now undergoing a retest of this breakout, requiring further confirmation of momentum. The RSI is currently in a favourable zone, and according to technical analysis, if the stock capitalizes on the breakout and gains momentum, it may continue to move higher.

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 Adani Group, led by Gautam Adani, sold a 2.8% stake in Ambuja Cements for Rs 4,200 crore, leading to a 4% rise in the stock price. Following this sale, the group's stake in the company now stands at 70.33%. This comes after Ambuja Cements recently acquired Penna Cement for Rs 10,422 crore, enhancing its market share in southern India. The sale was conducted via a pre-market block deal, with Holderind Investments, an Adani Group entity, offering shares at a slight discount to the previous closing price.
  
  
• HDFC Bank has rejected a $2 billion proposal from Japan's MUFG to purchase a 20% stake in its non-banking subsidiary, HDB Financial Services. Instead, the bank's board has opted to pursue a listing of HDB to meet RBI regulations. This decision halts what would have been the largest FDI deal in India's financial services sector, disappointing Japanese officials who had strongly supported the transaction.
  
  
• Dabur India Limited has signed a Memorandum of Understanding (MoU) with the Tamil Nadu government to establish its first manufacturing unit in South India. The initial phase of the project involves an investment of Rs 135 crore, with plans to scale up to Rs 400 crore over five years. The facility aims to meet the rising demand in South India, create approximately 250 direct jobs, and boost economic development in the region. This strategic move will also enhance Dabur's sourcing of agricultural produce from local farmers in Tamil Nadu.

Stock name: NMDC Steel Ltd.

Pattern: Double top pattern and retest

Time frame: Weekly

Observation:

The stock has been on an upward trend since its 2023 listing, but from January to August 2024, it consolidated and formed a double top pattern on the weekly chart. In August 2024, the stock broke out from this pattern, but the low trading volume raises doubts about the breakout's strength. The stock is currently moving above the breakout line. Therefore, additional confirmation is needed for both the breakout and potential downward movement. If the stock gains downward momentum, further decline may follow according to technical analysis.

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: Hindustan Petroleum Corporation Ltd.

Pattern: Cup and handle pattern and retest

Time frame: Daily

Observation:

Since October 2023, the stock has experienced rapid upward movement. From February to August 2024, it stabilized and formed a cup and handle pattern on the daily chart. On August 21, 2024, the stock broke out from this pattern with slightly above-average trading volume, supported by a bullish MACD indicator. However, the stock is currently facing a retest with a very high RSI level, suggesting the need for further confirmation to assess the breakout's momentum. If the stock continues in the breakout direction, stock may rise according to technical analysis.

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 Capital Ltd has sought approval from the Competition Commission of India (CCI) to merge with Tata Motors Finance Ltd (TMFL). The merger, approved by both companies' boards in June, will result in Tata Capital issuing equity shares to TMFL shareholders, giving Tata Motors a 4.7% stake in the merged entity. This move supports Tata Motors' strategy to exit non-core businesses and concentrate on emerging technologies. Tata Motors Finance, the vehicle financing arm of Tata Motors, primarily finances Tata vehicle sales. The merger proposal will be filed with the National Company Law Tribunal.
  
  
• HDFC Bank has outpaced its peers in attracting deposits, despite having significantly fewer branches than State Bank of India. The Reserve Bank of India's push to improve the credit-to-deposit mix has intensified competition among banks, but public sector banks have struggled to keep up, even with their extensive branch networks. HDFC Bank, the largest private sector lender in India, achieved substantial deposit growth, highlighting its strong performance in the ongoing competition for liabilities.
  
  
• In its first full year of operations, Tata Electronics achieved a remarkable ninefold increase in sales, largely driven by the acquisition of Wistron's iPhone assembly plant near Bengaluru. The company's consolidated income surged to ₹3,802 crore in FY24, up from ₹401 crore the previous year. Despite this growth, Tata Electronics reported a net loss of ₹825 crore due to high expenses. The acquisition allowed Tata Electronics to join Apple's global supply chain, making it the only homegrown iPhone assembler in India. However, the net loss widened due to high depreciation and interest costs.

Stock name: Bombay Burmah Trading Corporation Ltd.

Pattern: Rounding bottom pattern

Time frame: Monthly

Observation:

After a downward trend since September 2018, the stock recently recovered and surpassed its 2018 levels, forming a rounding bottom pattern on the monthly chart from September 2018 to June 2024. The stock broke out of this pattern in June 2024 with significant volume and has continued to rise. However, the current RSI level indicates the stock is in the overbought zone, which may lead to a retest. According to technical analysis, if the stock maintains its momentum, it might continue to move higher.

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: Chambal Fertilizers & Chemicals Ltd.

Pattern: Flag and pole pattern

Time frame: Daily

Observation:

The stock experienced a sharp rise in June 2024, followed by consolidation in July and August 2024, forming a flag and pole pattern on the daily chart. Although it hasn’t broken out yet, the stock is nearing the breakout line. The MACD indicator is close to signalling a bullish trend, and the RSI levels are 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.

News for the day:

• Thirteen years after their breakup, Honda Motorcycle & Scooter India (HMSI) has overtaken Hero MotoCorp in wholesale dispatches, recording 18.53 lakh units from April to July, compared to Hero's 18.31 lakh units. This shift is attributed to strong urban demand for scooters and mid-to-premium motorcycles, coupled with an incomplete recovery in rural areas. Despite this, Hero remains ahead in retail sales. The competition between the two brands is expected to intensify with the approaching festive season, as Honda's market share continues to rise while Hero's declines.
  
  
• Foxconn has started trial production of Apple's iPhone 16 Pro and Pro Max models at its Chennai facility, aiming to begin mass production by the end of the fiscal year. This move is part of Apple's strategy to reduce reliance on Chinese manufacturing amid geopolitical tensions. Small batches of components, including printed circuit boards, display assemblies, and camera modules, have been imported, signalling the ongoing pilot phase. Foxconn is also conducting pilot runs for the base models, with plans to meet the global launch timeline set for September.
  
  
• Grasim Industries has made a record capital expenditure of nearly ₹20,000 crore in fiscal year 2023-24, its largest investment to date, according to Chairman Kumar Mangalam Birla. Over the past five years, the company has invested around ₹50,000 crore, with over 75% focused on growth initiatives. Birla expressed optimism about the company's building materials segment, anticipating significant growth in India's booming housing and infrastructure sectors, particularly in cement and decorative paints.

Stock name: IDFC Ltd.

Pattern: Double top pattern and retest

Time frame: Weekly

Observation:

After the COVID market crash, the stock has been on an upward trajectory. From July 2023 to July 2024, it formed a double top pattern on its weekly chart, with a breakout occurring in late July 2024. This breakout was supported by above-average trading volume and a bearish MACD indicator. However, the stock is still near the pattern's neckline, suggesting that further confirmation of the downward momentum is needed. The RSI is currently around 40, and as per technical analysis, if the stock gains momentum in line with the breakout, it may see 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: KPIT Technologies Ltd.

Pattern: Cup and handle pattern

Time frame: Daily

Observation:

Since its listing, the stock has maintained an upward trend. Between February and August 2024, it consolidated, forming a cup and handle pattern on the daily chart. The stock has yet to break out from this pattern, with the trendline acting as resistance. A bullish MACD indicator and favourable RSI levels are present. According to technical analysis, if the stock breaks out with strong momentum, it may 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:

• The Shapoorji Pallonji Group has created a new holding company, Shapoorji Pallonji Real Estate (SPRE), to consolidate and monetize its $6 billion real estate assets across key Indian cities. SPRE plans to go public within two years, aiming to raise up to $2 billion. The restructuring focuses on streamlining operations, reducing debt, and expanding its middle-income housing projects under Joyville Shapoorji.
  
  
• Banks in Mumbai saw their borrowings surpass ₹9 lakh crore by July 26, driven by credit growth outpacing deposits. Despite some improvement in deposits, liquidity shortages persisted, leading banks to rely heavily on short-term funding methods, such as interbank repos and infrastructure bonds. Borrowings increased by 20% since April, reaching ₹9.32 lakh crore. The Reserve Bank of India highlighted concerns over potential liquidity issues due to the growing gap between credit and deposit growth, with banks turning to market borrowings to meet the rising credit demand.
  
  
• Mukesh Ambani is enlisting the help of Chinese fashion giant Shein to compete with Tata Group's Trent Ltd. in India's fast-fashion market. Despite substantial investments, Reliance Retail has struggled to match Trent's success, particularly with its Zudio brand, which has rapidly expanded across India. Ambani's Reliance Retail aims to dominate the market ahead of a planned IPO, but faces stiff competition as Trent continues to grow its market share. The partnership with Shein is seen as a key move for Ambani to close the gap, but challenges remain.

In today’s globalized economy, individuals and businesses often find themselves engaging in transactions across international borders. While this presents numerous opportunities, it also introduces complexities, particularly when it comes to taxes. Since, different countries have different tax laws, they levy taxes according to their domestic tax laws and in some cases, the taxpayer ends up paying double tax on the same income, once in their home jurisdiction and once in foreign jurisdiction.

In order to mitigate such situations, these countries enter into Double tax avoidance agreements (DTAA) with each other (India has DTAA with 90+ countries). Additionally, if there is no DTAA in India and another county they can claim FTC as per Indian Income tax Act. These agreements facilitate the taxpayer by allowing them to pay tax on certain incomes in only one country. This is done by way of Foreign Tax Credit (FTC), a mechanism designed to alleviate double taxation for those subject to taxes in both their home country and a foreign jurisdiction.

So, what exactly is a Foreign Tax Credit?

The Foreign Tax Credit is a provision in tax law that allows taxpayers to offset the taxes they have paid to foreign governments against their domestic tax liabilities. In essence, it prevents the same income from being taxed twice, once by the country where it was earned and again by the taxpayer's home country. This credit is available to both individuals and businesses having incomes in countries which have mutual DTAA allowing availment of tax credit.

Let us understand this case with the help of an example, Suppose Mr. Akshay is employed in U.S from Apr’21 to Jun’23 and in Jul’23, he relocates to India where he got a new job. Now, for financial year 23-24, he has stayed in India for 9 months implying him a resident status in India for FY 23-24.

Now, for FY 23-24, his global income will be taxable in India including his U.S Salary. Since, this salary is earned in U.S, he has to pay tax on this salary in U.S as well. In such cases, in order to avoid double tax, he can claim foreign tax credit of the taxes paid on salary in U.S with Indian tax authorities.

In such cases, residents can claim credit for the amount of tax deducted in the foreign state by filing Form 67 with the income tax department. Residents must submit Form 67 before the due date of Income Tax Returns (ITR) filing to claim credit for such taxes.

By understanding how the credit works and implementing effective tax planning strategies, taxpayers can minimize their overall tax liabilities and maximize their returns on global investments.

Understanding FTC in India from legal point of view:

Sections 90 (India has DTAA with 90+ countries) and section 91 (an individual is eligible to claim tax relief if a DTAA is absent between India and another country) of Income Tax Act, under these sections, if the taxpayer is a resident of India, and he has paid taxes outside India, he can claim a credit of such foreign taxes paid against his tax payable in India.

Rules for claiming FTC have been notified, which have helped clear out ambiguity around claiming of FTC, some of which have been briefly captured here under:

1. FTC is allowed in the year in which the income corresponding to such tax has been offered or assessed to tax in India;
2. FTC shall be lower of, tax payable on such income under the Indian tax laws and the foreign tax paid;
3. FTC shall be available against the amount of tax, surcharge and cess payable under the Indian tax laws but not against interest, fee or penalty;
4. FTC shall not be available if the foreign tax is a disputed one;
5. FTC is available even on tax payable under Section 115JD (Alternate Minimum Tax);
6. FTC shall be the aggregate of the amounts of credit computed separately for each source of income arising from a particular country;
7. FTC shall be determined by conversion of the currency of payment of the foreign tax at a specified rate

Documents required to claim FTC

In order to claim FTC, the taxpayer is required to furnish the following documents on or before the due date of filing of return:

1. A statement of foreign income offered to tax & foreign tax deducted or paid on such income – This is mostly available in the tax return of the foreign country
2. Salary Slips of the foreign employer
3. Proof of payment of taxes outside India (Something like Form 1042S (Withholding certificate if from U.S)

स्टॉकचे नाव: स्टर्लिंग आणि विल्सन रिन्यूएबल एनर्जी लि.

पॅटर्न: डबल टॉप पॅटर्न आणि रिटेस्ट 

वेळ फ्रेम: दररोज

निरीक्षण:

ऑक्टोबर 2023 पासून हा स्टॉक वरच्या दिशेने ट्रेंड करत आहे. मे ते जुलै 2024 या कालावधीत, त्याने त्याच्या दैनंदिन चार्टवर दुहेरी टॉप पॅटर्न तयार केला आणि 19 जुलै 2024 च्या पॅटर्नमधून सरासरीपेक्षा जास्त ट्रेडिंग व्हॉल्यूमसह बाहेर पडला. ब्रेकआऊटनंतर, स्टॉकने ब्रेकआउट पातळीची पुन्हा चाचणी केली आणि नंतर दुसऱ्या रीटेस्टपूर्वी त्याची खालची हालचाल पुन्हा सुरू केली. सध्या, तो पुन्हा ब्रेकआउट पातळीच्या खाली बंद झाला आहे. तांत्रिक विश्लेषणानुसार, जर समभागाने खालच्या दिशेने गती घेतली तर त्यात आणखी घसरण दिसू शकते, तरीही अतिरिक्त पुष्टीकरण आवश्यक आहे.

पुढील किंमत क्रिया समजून घेण्यासाठी तुम्ही हे तुमच्या वॉच लिस्टमध्ये जोडू शकता.

अस्वीकरण: हे विश्लेषण पूर्णपणे शैक्षणिक हेतूसाठी आहे आणि त्यात कोणतीही शिफारस नाही. कोणताही आर्थिक निर्णय घेण्यापूर्वी कृपया तुमच्या आर्थिक सल्लागाराचा सल्ला घ्या.

स्टॉकचे नाव: क्रिसिल लि.

पॅटर्न: डबल बॉटम पॅटर्न

वेळ फ्रेम: दररोज

निरीक्षण:

एप्रिल ते ऑगस्ट 2024 पर्यंतच्या दैनिक चार्टवर दुहेरी तळाचा पॅटर्न तयार करून त्याच्या ATH वरून स्टॉक खाली आला आहे. तो अद्याप पॅटर्नमधून बाहेर पडला नसला तरी, तो ब्रेकआउट लाइनच्या जवळ आहे, जो प्रतिकार म्हणून काम करू शकतो. स्टॉकने अलीकडेच तेजीचा MACD सिग्नल दर्शविला आणि तो 50 RSI पातळीच्या वर आहे. तांत्रिक विश्लेषणानुसार, मजबूत गतीसह ब्रेकआउटमुळे पुढील वरच्या दिशेने हालचाल होऊ शकते.

पुढील किंमत क्रिया समजून घेण्यासाठी तुम्ही हे तुमच्या वॉच लिस्टमध्ये जोडू शकता.

अस्वीकरण: हे विश्लेषण पूर्णपणे शैक्षणिक हेतूसाठी आहे आणि त्यात कोणतीही शिफारस नाही. कोणताही आर्थिक निर्णय घेण्यापूर्वी कृपया तुमच्या आर्थिक सल्लागाराचा सल्ला घ्या.

दिवसाच्या बातम्या:

1) कर्नाटक सरकारने आपल्या सर्व विभागांना आणि संस्थांना स्टेट बँक ऑफ इंडिया (SBI) आणि पंजाब नॅशनल बँक (PNB) मधून 20 सप्टेंबर 2024 पर्यंत व्यवहार थांबवण्याचे आणि ठेवी काढून घेण्याचे आदेश दिले आहेत, ₹ 22 कोटींच्या पूर्ततेच्या वादानंतर. बँक कर्मचाऱ्यांसह घोटाळे. SBI आणि PNB दोघेही या समस्येचे सौहार्दपूर्ण निराकरण करण्यासाठी राज्याशी चर्चा करत आहेत, परंतु हे प्रकरण सध्या न्यायप्रविष्ट आहे. सरकारचे निर्देश बँकांसाठी आश्चर्यचकित करणारे आहेत, विशेषतः बँकिंग क्षेत्राला ठेवींच्या वाढीशी संबंधित आव्हानांचा सामना करावा लागत आहे.

2) जुलैमध्ये, भारतातील वस्त्र आणि वस्त्र निर्यात 4.73% ने वाढून USD 2,937.56 दशलक्ष झाली, जी परिधानांच्या मागणीमुळे चालते. कापड निर्यात USD 1,660.36 दशलक्ष वर स्थिर राहिली, तर वस्त्रांची निर्यात 11.84% ने वाढून USD 1,277.20 दशलक्ष झाली. वाढीचे श्रेय यूएस, ईयू आणि यूके सारख्या प्रमुख क्षेत्रांमध्ये वाढलेल्या बाजारपेठेला दिले जाते. भारतीय वस्त्रोद्योग परिसंघ (CITI) भविष्यातील निर्यात ऑर्डरबद्दल आशावादी आहे, विशेषत: ऑस्ट्रेलिया आणि UAE सह अलीकडील मुक्त व्यापार करार (FTAs) च्या समर्थनासह, ज्यामुळे निर्यातीला आणखी चालना मिळण्याची अपेक्षा आहे.

3) वेदांत लि.च्या बोर्डाने हिंदुस्तान झिंक लिमिटेड (एचझेडएल) मधील 3.31% स्टेक विकण्यास मान्यता दिली, ज्यातून 8,000 कोटी रुपयांपेक्षा जास्त उभारणी अपेक्षित आहे. ही रक्कम कर्ज परतफेड आणि भांडवली खर्चासाठी वापरली जाईल, ज्याला वेदांत रिसोर्सेस लिमिटेडच्या कर्जदारांसाठी क्रेडिट-सकारात्मक चाल म्हणून पाहिले जाते. तथापि, या विक्रीमुळे HZL मधील वेदांताचा हिस्सा 61.61% पर्यंत कमी होतो, ज्यामुळे HZL कडून भविष्यातील लाभांश कमी होऊ शकतो, जो समूहासाठी एक प्रमुख रोख जनरेटर आहे. भागविक्री असूनही, वेदांत कर्ज कमी करण्यावर आणि व्याजाचा बोजा व्यवस्थापित करण्यावर लक्ष केंद्रित करत आहे, जरी त्यांनी आपला स्टील व्यवसाय विकण्याची योजना रद्द केली आहे.

Stock name: Sterling and Wilson Renewable Energy Ltd.

Pattern: Double top pattern and retest

Time frame: Daily

Observation:

The stock has been trending upward since October 2023. Between May and July 2024, it formed a double top pattern on its daily chart and broke out from the pattern on July 19, 2024, with above-average trading volume. After the breakout, the stock retested the breakout level and then resumed its downward movement before a second retest. Currently, it has closed below the breakout level again. According to technical analysis, if the stock gains downward momentum, it may see further decline, though additional confirmation is needed.

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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: CRISIL Ltd.

Pattern: Double bottom pattern

Time frame: Daily

Observation:

The stock has cooled down from its ATH forming a double bottom pattern on its daily chart from April to August 2024. While it hasn’t broken out from the pattern yet, it is nearing the breakout line, which could act as resistance. The stock recently showed a bullish MACD signal and is above the 50 RSI level. According to technical analysis, a breakout with strong momentum could lead to further upward movement.

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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.

News for the day:

• The Karnataka government has ordered all its departments and entities to cease transactions and withdraw deposits from State Bank of India (SBI) and Punjab National Bank (PNB) by September 20, 2024, following disputes over the redemption of ₹22 crore linked to scams involving bank employees. Both SBI and PNB are in discussions with the state to resolve the issue amicably, but the matter is currently sub judice. The government's directive has come as a surprise to the banks, particularly as the banking sector faces challenges related to deposit growth.
  
  
• In July, India's textiles and apparel exports rose by 4.73% to USD 2,937.56 million, driven by strong demand for apparel. While textile exports remained stable at USD 1,660.36 million, apparel shipments surged by 11.84% to USD 1,277.20 million. The growth is attributed to increased market share in key regions like the US, EU, and UK. The Confederation of Indian Textile Industry (CITI) is optimistic about future export orders, especially with the support of recent Free Trade Agreements (FTAs) with Australia and the UAE, which are expected to boost export momentum further.
  
  
• Vedanta Ltd's board approved the sale of a 3.31% stake in Hindustan Zinc Ltd (HZL), expected to raise over Rs 8,000 crore. The proceeds will be used for debt repayment and capital expenditure, which is seen as a credit-positive move for Vedanta Resources Ltd's creditors. However, the sale reduces Vedanta's stake in HZL to 61.61%, potentially lowering future dividends from HZL, a key cash generator for the group. Despite the stake sale, Vedanta remains focused on debt reduction and managing its interest burden, although it has shelved plans to sell its steel business.

Stock name: Tata Steel Ltd.

Pattern: Head and shoulders pattern

Time frame: Daily

Observation:

Since July 2022, the stock has been trending upward. From April 2024 to August 2024, it formed a head and shoulders pattern on its daily chart. The stock broke out of this pattern on August 5, 2024, with above-average trading volume and a bearish MACD indicator. Following the breakout, the stock has been moving downward. However, the current RSI is very low, which may indicate a potential retest. According to technical analysis, if the stock maintains its current momentum, it could continue to decline further.

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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: Apollo Hospitals Enterprise Ltd.

Pattern: Cup and handle pattern

Time frame: Daily

Observation:

Since May 2022, the stock has been trending upward. Recently, between February 2024 and August 2024, it has stabilized, forming a cup and handle pattern on its daily chart. The stock has not yet broken out from this pattern. Currently, the RSI levels are in a favourable zone. According to technical analysis, if the stock breaks out with strong momentum, it might see a continuation in the upward movement.

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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.

News for the day:

• The Supreme Court has permitted states to collect past mining royalties from April 1, 2005, with payments spread over 12 years starting April 1, 2026. This decision led to declines in stock prices for Hindustan Zinc, NMDC, Coal India, Tata Steel, and SAIL. The ruling follows a July 25 verdict affirming states' power to tax mineral resources, overturning a 1989 judgment. The retrospective application has sparked debate, with concerns over financial impacts on companies and the Centre.
  
  
• The Enforcement Directorate (ED) has summoned Dabur India Chairman Mohit Burman and three Care Health Insurance directors over a money laundering probe related to the Burman family's open offer for Religare Enterprises. The investigation, sparked by REL shareholder Vaibhav Gawli’s complaints, is examining alleged misuse of funds from Religare Finvest. The Burman family supports the probe, claiming their offer complied with regulations. The Economic Offences Wing (EOW) of Mumbai police is also investigating and has sought SEBI's input on the allegations.
  
  
• Muthoot Finance's loan assets under management (AUM) rose 28% year-over-year to ₹98,048 crore in Q1 FY25. The company's gold loan AUM grew 25% to ₹84,324 crore. Muthoot Homefin saw a 47% increase in loan AUM, reaching ₹2,199 crore, and a 103% rise in loan disbursements to ₹221 crore. Profit after tax for Muthoot Finance increased 11% to ₹1,079 crore, while subsidiary Belstar Microfinance's AUM grew 42% to ₹9,952 crore, with a 73% rise in profit. Other subsidiaries also showed notable growth, with Muthoot Money's loan portfolio increasing 234% year-over-year.