Technical Analysis of CHOLAHLDNG & KFINTECH

Stock name: Cholamandalam Financial Holdings Ltd.

Pattern: Flag and pole pattern

Time frame: Weekly

Observation:

Between March and September 2023, the stock experienced a rapid rise. Since September, it has consolidated, forming a flag and pole pattern on the weekly chart. In June 2024, the stock broke out of this pattern with above-average trading volume and a bullish MACD indicator. Following the breakout, the stock continued to move rapidly upwards. Technical indicators suggest that if the current momentum is sustained, the stock may climb even higher.

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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: Kfin Technologies Ltd.

Pattern: Double bottom pattern and retest

Time frame: Daily

Observation:

Since May 2024, the stock has declined, forming a double bottom pattern on the daily chart. On July 2, 2024, it broke out of this pattern with above-average trading volume and a positive MACD breakout. After the breakout, the stock moved slightly upward but immediately faced a retest. Currently, the RSI is in a favourable zone. According to technical analysis, if the stock rebounds from the retest, 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 is likely to amend its EV policy to benefit legacy car manufacturers that have already invested in the country, as Tesla has not committed to building a factory. The current policy supports only new investments for high-end EV manufacturing. The government may allow investments in plants producing both internal combustion and electric vehicles to qualify for incentives. Automakers have raised concerns that the policy should also consider existing investments. Consultations are ongoing to make the Scheme for Manufacturing of Electric Cars (SMEC) more attractive to traditional companies.
  
  
• Bajaj Auto is set to disrupt the market with its CNG-powered Freedom 125 motorcycle, priced between Rs 95,000 and Rs 110,000. It aims to challenge Hero Honda by reducing operating costs by up to 50% compared to petrol bikes. Rajiv Bajaj sees this as "returning the favour" to Hero Honda, which transformed the market 25 years ago. Targeting the entry-level segment, Bajaj plans to produce 10,000 units monthly, increasing to 40,000-50,000 by FY25, with initial focus on the domestic market.
  
  
• PC Jeweller Ltd announced that Punjab National Bank has approved a one-time settlement (OTS) for its outstanding dues. This approval was disclosed in a regulatory filing, noting that PNB, the third largest bank in the consortium, has agreed to the company's OTS proposal. The settlement includes cash and equity components, and details about the release of securities and properties. PC Jeweller, which operates 60 showrooms across 44 cities in India, is refocusing on brand presence and marketing. The company is also revamping business operations, including new jewellery collections and franchisee business optimization.