Stock name: Dabur India Ltd.
Pattern: Falling wedge pattern and retest
Time frame: Weekly
Observation:
After reaching its all-time high, the stock began a downward trend. Between September 2021 and June 2024, it formed a falling wedge pattern on the weekly chart. It broke out of this pattern in early June 2024 with significant trading volume. Although currently facing a slight retest, the stock maintains a healthy RSI. Technical analysis indicates that if it sustains its momentum, it may continue to rise.
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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: Indian Energy Exchange Ltd.
Pattern: Double bottom pattern
Time frame: Weekly
Observation:
The stock has been declining since December 2021. From May 2023 to June 2024, the stock stabilised and formed a double bottom pattern on its weekly chart. The stock has registered a breakout from this pattern in the month of June 2024. This breakout was supported by significant trading volume. Following this breakout, the stock continues to rise, along with a favourable RSI level. Technical analysis suggests that if the stock maintains its momentum, it might see 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:
- Tata Motors is reviving the Freelander as a made-in-China electric vehicle through its JLR subsidiary in partnership with Chery Automobile. The new EV will target China's market initially, with global expansion plans. This move aims to boost Tata Motors' electric profitability and compete with local brands. Production will be managed under the CJLR joint venture, leveraging Chery's technology and facilities.
- The Power Finance Corporation (PFC) board has approved a Rs 15,000 crore loan to Shapoorji Pallonji group companies. This loan will help the Mistry family, who own 18.37% of Tata Sons, to repay personal debts and fulfil financial obligations to creditors. The loan is secured by the cash flows from SP Group's real estate operations and the Mistry family's shares in Tata Sons.
- Vedanta Resources, the UK-based parent of India's Vedanta Ltd, plans to reduce its debt by $3 billion over the next three years. Facing multiple rating downgrades due to liquidity issues and default risks, the company will leverage liquidity from its $3.20 billion outstanding bonds to fund essential capital expenditure projects. Currently holding $6 billion in debt, Vedanta Resources has already reduced its debt by $3.70 billion in the past two years. The company aims to operationalize coal blocks and expand its steel and aluminium capacities, with $1.90 billion allocated for fiscal 2025.
