Stock name: Coal India Ltd.
Pattern: Rounding bottom pattern
Time frame: Monthly
Observation:
The stock has formed a rounding bottom pattern on its monthly chart from 2015 to 2024. A breakout from this pattern occurred in April 2024, followed by continued upward movement in the subsequent month. Currently, the RSI indicates that the stock is in the overbought zone, which could lead to a retest. However, technical analysis suggests that if the stock maintains its current momentum, it might move further upwards.
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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: Engineers India Ltd.
Pattern: Cup and handle pattern and retest
Time frame: Daily
Observation:
The stock has maintained an upward trend since April 2023. It formed a cup and handle pattern on its daily chart between April and May 2024. On May 14, 2024, the stock broke out from this pattern with a bullish MACD indicator and above-average trading volume. Following the breakout, the stock saw a slight upward move but immediately retested the breakout level, cooling off the RSI to favourable levels. According to technical analysis, if the stock rebounds from the current retest, it may continue to move upward.
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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:
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- Bharti Airtel chairman Sunil Mittal emphasized that Vodafone Idea (Vi) must settle past dues with Indus Towers to access new services like 5G. Airtel, holding a 48% stake in Indus, insists Vi must clear its ₹10,000 crore debt. While Indus may show flexibility if substantial payments and a repayment schedule are provided, Vi's ability to expand its 4G and roll out 5G depends on these payments. Recently, Vi raised ₹18,000 crore and plans further fundraising to upgrade its network and stop subscriber losses.
- OPEC+ has extended its substantial oil production cuts until 2025 to stabilize the market amidst slow demand growth, high interest rates, and increasing U.S. oil production. The group will maintain its current reduction of 5.86 million barrels per day (bpd). Mandatory cuts of 3.66 million bpd, initially set to expire at the end of 2024, will now last until the end of 2025, while voluntary cuts of 2.2 million bpd will extend until September 2024 and then phase out. This move aims to support oil prices by tightly managing supply during uncertain economic conditions.
