Stock name: JK Lakshmi Cement Ltd.
Pattern: Cup and handle pattern and retest
Time frame: Daily
Observation:
Between December 2022 and January 2024, the stock exhibited a cup and handle pattern on its daily chart. A notable breakout occurred on January 25, 2024, marked by significant trading volume and a positive MACD indicator. Subsequently, the stock underwent a substantial retest of the breakout levels. Presently, the stock's RSI level hovers just below 50. Technical analysis suggests that a rebound from the retest may propel the stock in an upward direction.
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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: Jindal Steel & Power Ltd.
Pattern: Rounding bottom pattern
Time frame: Monthly
Observation:
Since 2010, the stock experienced a decline, but from September 2015 onwards, it initiated a recovery, moving upward. Recently, it reached its 2010 levels and formed a rounding bottom pattern on the monthly chart from April 2010 to December 2023. December 2023 witnessed a breakout from this pattern. Post breakout the stock has continued its upward movement. According to technical analysis, maintaining the current momentum may propel the stock further 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:
- Zomato shares dipped 3.6% on BSE after Ant Financial, an Alibaba affiliate, sold a 2% stake at a 5% discount in a block deal worth over Rs 3,000 crore. This move led to a CLSA target price revision. Zomato reported a quarterly net profit of Rs 138 crore, showing a 69% increase in revenue. Ant Financial held a 6.32% stake in Zomato as of December, making the recent sell-off a notable development.
- RBI has prohibited JM Financial Products from engaging in share and bond funding, citing regulatory lapses and governance violations. The directive includes a halt to financing against shares and debentures, including loans against IPOs and subscription to debentures. Despite the regulator's claims, JM Financial Products has refuted allegations of lapses and violations. The Reserve Bank of India's stern letter on Tuesday emphasized the immediate cessation of such financial activities by the company.
- The Reserve Bank of India (RBI) has imposed immediate restrictions on IIFL Finance, preventing the disbursal of gold loans. Following this announcement, IIFL Finance's shares were locked in a 20% lower circuit. The RBI's directive prohibits the company from issuing new gold loans or disbursing funds against existing ones. This development has significantly impacted IIFL Finance's market performance, prompting a notable decrease in its share value.
