Stock name: Amara Raja Energy & Mobility Ltd.
Pattern: Double top pattern
Time frame: Daily
Observation:
Since March 2024, the stock has seen significant upward movement. Recently, it stabilized and formed a double top pattern on its daily chart, breaking out from this pattern on August 5, 2024. Currently, the stock is moving downward, and its RSI level is low. According to technical analysis, if the breakout momentum continues, the stock may 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: Brigade Enterprises Ltd.
Pattern: Head and shoulders pattern
Time frame: Daily
Observation:
The stock has been trending upwards since March 2024. Recently, it formed a head and shoulders pattern on its daily chart and broke out from this pattern on August 5, 2024. Despite recovering at the opening on August 6, it still declined and closed below the breakout line of the pattern. The RSI level is currently low. According to technical analysis, if the breakout 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:
- Real estate leaders have praised Finance Minister Nirmala Sitharaman's proposed amendment to the Finance Bill, offering significant relief on capital gains tax for property transactions. The amendment allows taxpayers to choose between a 12.5% tax rate without indexation or a 20% rate with indexation for properties acquired before July 23, 2024. This move is expected to boost investment and sales in the real estate sector. Shares of real estate companies surged, with the Nifty Realty index rising around 1.5%. Similar provisions apply to unlisted equity transactions, now taxed at 10% long-term capital gains.
- Mahindra & Mahindra plans to boost its services business, focusing on Mahindra Finance and Tech Mahindra. Services currently contribute 30-40% to profits and could exceed 50% in the next 5-7 years. The company aims for aggressive growth in real estate, hospitality, and logistics, having already improved margins and diversified products. Mahindra Finance is enhancing asset quality, while Tech Mahindra focuses on operational execution. The group's portfolio value has grown from $800 million in FY20 to $4.2 billion in March 2024.
- Tata Power Company plans to acquire a 40% stake in Khorlochhu Hydro Power Limited for Rs 830 crore. This acquisition, done in tranches over six months, is part of a Share Purchase Agreement with the current shareholders. The aim is to develop the 600 MW Khorlochhu Hydropower Project in Bhutan with a total investment of Rs 6,900 crore. This move will support Tata Power's transition to clean energy, making KHPL an associate company and related party post-acquisition.
