Stock name: Gujarat State Petronet Ltd.
Pattern: Double top pattern
Time frame: Daily
Observation:
The stock has been rising since June 2022 but recently stabilized, forming a double top pattern on its daily chart. On April 22, 2024, it experienced a significant gap down opening, breaking out from the pattern with high trading volume and a bearish MACD. Since the breakout, the stock has continued to decline below the breakout line at a slower pace, with its RSI at very low levels. Technical analysis indicates that if this trend persists, the stock may continue to move downward.
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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: Pidilite Industries Ltd.
Pattern: Symmetrical triangle pattern and retest
Time frame: Weekly
Observation:
Since 2022, the stock has been trading sideways, forming a symmetrical triangle pattern on its weekly chart from January 2022 to March 2024. In March 2024, the stock broke out of this pattern with above-average trading volume. Following the breakout, a retest helped cool off the overbought RSI, and the stock successfully rebounded. Technical analysis suggests that if the stock maintains its current momentum, it may continue to 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.
News for the day:
- Adani Enterprises' board has approved raising Rs 16,600 crore through Qualified Institutional Placement (QIP). This initiative requires approval at the June 24 AGM and from regulators. Previously, Adani Enterprises had approved a Rs 12,500 crore QIP in May 2023, which wasn't executed. Additionally, Adani Energy Solutions also plans to raise Rs 12,500 crore through QIP.
- LIC is considering entering the health insurance sector and evaluating acquisitions, anticipating new composite insurance licenses. This move aims to boost India's under-penetrated health insurance market. LIC reported a 2% rise in Q4 FY24 net profit to Rs 13,763 crore and annual profits of Rs 40,676 crore, recommending a final dividend of Rs 6 per share.
- UltraTech Cement has offered to acquire a 31.6% stake in UAE-based RAK Cement Co through its subsidiary, UltraTech Cement Middle East Investments Ltd. This follows an earlier announcement of a $101.10 million investment for a 29.39% stake. The acquisition offer period runs from May 28 to June 24, 2024. RAKWCT, listed on the Abu Dhabi stock exchange, had a Rs 482.5 crore turnover in 2021.
