Stock name: IDFC Ltd.
Pattern: Double top pattern and retest
Time frame: Weekly
Observation:
After the COVID market crash, the stock has been on an upward trajectory. From July 2023 to July 2024, it formed a double top pattern on its weekly chart, with a breakout occurring in late July 2024. This breakout was supported by above-average trading volume and a bearish MACD indicator. However, the stock is still near the pattern's neckline, suggesting that further confirmation of the downward momentum is needed. The RSI is currently around 40, and as per technical analysis, if the stock gains momentum in line with the breakout, it may see further decline.
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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: KPIT Technologies Ltd.
Pattern: Cup and handle pattern
Time frame: Daily
Observation:
Since its listing, the stock has maintained an upward trend. Between February and August 2024, it consolidated, forming a cup and handle pattern on the daily chart. The stock has yet to break out from this pattern, with the trendline acting as resistance. A bullish MACD indicator and favourable RSI levels are present. According to technical analysis, if the stock breaks out with strong momentum, it may 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:
- The Shapoorji Pallonji Group has created a new holding company, Shapoorji Pallonji Real Estate (SPRE), to consolidate and monetize its $6 billion real estate assets across key Indian cities. SPRE plans to go public within two years, aiming to raise up to $2 billion. The restructuring focuses on streamlining operations, reducing debt, and expanding its middle-income housing projects under Joyville Shapoorji.
- Banks in Mumbai saw their borrowings surpass ₹9 lakh crore by July 26, driven by credit growth outpacing deposits. Despite some improvement in deposits, liquidity shortages persisted, leading banks to rely heavily on short-term funding methods, such as interbank repos and infrastructure bonds. Borrowings increased by 20% since April, reaching ₹9.32 lakh crore. The Reserve Bank of India highlighted concerns over potential liquidity issues due to the growing gap between credit and deposit growth, with banks turning to market borrowings to meet the rising credit demand.
- Mukesh Ambani is enlisting the help of Chinese fashion giant Shein to compete with Tata Group's Trent Ltd. in India's fast-fashion market. Despite substantial investments, Reliance Retail has struggled to match Trent's success, particularly with its Zudio brand, which has rapidly expanded across India. Ambani's Reliance Retail aims to dominate the market ahead of a planned IPO, but faces stiff competition as Trent continues to grow its market share. The partnership with Shein is seen as a key move for Ambani to close the gap, but challenges remain.
