Stock name: Emami Ltd.
Pattern: Flag and pole pattern
Time frame: Daily
Observation:
At the beginning of June 2024, the stock experienced a rapid rise. It then consolidated through the month of June and early July, forming a flag and pole pattern on the daily chart. On July 8, 2024, the stock broke out of this pattern with above-average trading volume. Following the breakout, the stock continued to move upward. According to technical analysis, if the stock maintains its current momentum, it might rise 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: GMM Pfaudler Ltd.
Pattern: Double bottom pattern and retest
Time frame: Daily
Observation:
Since September 2023, the stock has been in a downward trend but has recently stabilized, forming a double bottom pattern on its daily chart. It broke out of this pattern on July 12, 2024, with above-average trading volume, followed by an immediate retest. The stock has rebounded from the retest and closed above the breakout level. Additionally, it shows a bullish MACD indicator and a favourable RSI level. Technical analysis suggests that if the stock maintains its rebound momentum, 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:
- Ola Electric, backed by SoftBank, is set to open its IPO for retail subscription on August 2, aiming to raise Rs 5,500 crore. This marks India's first IPO for an electric vehicle startup. Investors should note key aspects such as the company's financial health, market potential, and the impact of current industry trends. The IPO will include both new shares and an offer for sale.
- Yes Bank is in discussions to allow its lenders, particularly State Bank of India (SBI), to exit their stakes. Managing director and chief executive Prashant Kumar confirmed that the bank is negotiating with potential investors for this stake sale. Regulations prevent banks from holding stakes in other banks long-term, prompting these talks. This move is part of Yes Bank's broader strategy to comply with regulatory requirements and optimize its shareholder structure.
- UltraTech Cement's Board has approved the purchase of a 32.72% stake in India Cements from its promoters and associates, following an earlier acquisition of a 22.77% stake. This deal, which is subject to regulatory approval, will bolster UltraTech's capacity in Southern India. The transaction involves paying Rs 3,954 crores at Rs 390 per share, triggering a mandatory open offer. Chairman Kumar Mangalam Birla emphasized the economic and infrastructural benefits, aligning with UltraTech’s goal to enhance India's infrastructure.
