Stock name: HDFC Asset Management Company Ltd.
Pattern: Rounding bottom pattern and retest
Time frame: Weekly
Observation:
A rounding bottom pattern has emerged on the weekly chart of the stock spanning from November 2019 to February 2024. In February 2024, the stock experienced a breakout from this pattern, backed by average trading volume. Currently, the stock is undergoing a retest phase accompanied by a notably high RSI level. According to technical analysis, a successful rebound from this retest may propel the stock in an upward trajectory.
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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: BSE Ltd.
Pattern: Flag and pole pattern
Time frame: Weekly
Observation:
Between September and December 2023, the stock witnessed a significant surge followed by consolidation, forming a flag and pole pattern on its weekly chart until March 2024. Towards the end of March 2024, the stock broke out from this pattern, backed by slightly above-average trading volume. Subsequently, it has been trending upwards. Technical analysis suggests that if the stock sustains its breakout momentum, it may continue its upward trajectory.
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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:
- IREDA achieved its highest-ever annual loan sanctions and disbursements in FY23-24, totalling Rs 37,354 crore and Rs 25,089 crore, respectively, marking a 26.71% growth in its loan book. Notably, in Q4 FY23-24, loan sanctions more than doubled to Rs 23,796 crore, and disbursements rose by 13.98% to Rs 12,869 crore.
- Fincare Small Finance Bank merged with AU Small Finance Bank. The all-stock merger, approved by RBI on March 4, 2024, enhances AU SFB's presence in South India, bolstering its distribution network and customer base. With about 1 crore customers and a network of 2,350 touchpoints across 25 states, the merger aims for seamless integration and exceptional service delivery. Both banks have established a dedicated task force to ensure a smooth transition.
- Aditya Birla Fashion and Retail Ltd. (ABFRL) announced plans to consider demerging its Madura Fashion & Lifestyle business into a separate listed company. The decision, made during a Board of Directors meeting, aims to assess the strategic move's potential benefits. ABFRL intends to split its retail business to unlock valuation, focus on each entity, and raise fresh capital. The proposed demerger seeks to address stagnant valuation and reverse losses witnessed during FY24 due to increased investment in newer niche ventures.
