Stock name: Gujarat Narmada Valley Fertilizers and Chemicals Ltd.
Pattern: Double bottom pattern and retest
Time frame: Daily
Observation:
The stock experienced a downward trend starting January 2024 but later stabilized, forming a double bottom pattern on its daily chart. On June 20, 2024, it broke out from this pattern with significant trading volume. However, following the breakout, the stock heavily retested the breakout level, even closing below it for a few sessions. Currently, the stock is again near the breakout level, with a positive MACD indicator and a favourable RSI. According to technical analysis, if the stock rebounds with strong 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: Granules India Ltd.
Pattern: Cup and handle pattern
Time frame: Monthly
Observation:
The stock has formed a cup and handle pattern on its monthly chart from December 2020 to June 2024. It experienced a breakout in June 2024, supported by above-average trading volume. Since the breakout, the stock has been moving upward with a high RSI level. According to technical analysis, if the stock maintains its current momentum, 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:
- Patanjali Foods is set to acquire Patanjali Ayurved's home and personal care business for Rs 1,100 crore. This acquisition, which includes a licensing agreement for trademarks and intellectual property rights, will help Patanjali Foods transition into a full-fledged FMCG company. The acquisition will consolidate the Patanjali brand under Patanjali Foods' FMCG portfolio, enhancing brand equity, product innovation, cost optimization, and market share. Patanjali Ayurved currently owns a 32.4% stake in Patanjali Foods.
- The Indian government has increased the windfall tax on petroleum crude from Rs 3,250 to Rs 6,000 per metric ton, effective July 2. This tax, reviewed bi-weekly and introduced in July 2022, aims to curb exports by private refiners. The hike follows a recent reduction in the tax on June 15. India, the third-largest oil consumer, relies on imports for over 85% of its crude oil. Oil prices rose by about 2% on Monday due to expected higher summer demand and OPEC+ production cuts, with Brent futures for September delivery reaching $86.25 per barrel.
- UK's Vodafone Group Plc may inject ₹2,000 crore equity into Vodafone Idea (Vi) from the sale of its remaining 3.1% stake in Indus Towers, analysts say. This equity infusion could help Vi reduce its dues to Indus. Vi plans to raise ₹23,000-25,000 crore through term loans, enabling it to make more substantial payments towards its debt. Vodafone is in talks with Bharti Airtel to sell its remaining Indus stake. Indus shares rose 3.9% on Monday, valuing Vodafone's stake at ₹3,256 crore. Airtel recently increased its stake in Indus to 48.95%.
