Stock name: Bank of Maharashtra
Pattern: Rounding bottom pattern
Time frame: Monthly
Observation:
Since January 2008, the stock has been on a downward trajectory, with a notable recovery post-COVID. Presently, it has reached levels last seen in 2014 and formed a rounding bottom pattern on its monthly chart from July 2014 to January 2024. The breakout from this pattern occurred in January 2024, supported by above-average trading volume. The current overbought RSI suggests a potential retest. According to technical analysis, the stock may experience further upward movement if it maintains its current momentum.
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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: Central Bank of India
Pattern: Cup and handle pattern and retest
Time frame: Weekly
Observation:
Since May 2017, the stock has exhibited a consistent decline. Notably, from September 2018 to January 2024, it underwent the formation of a cup and handle pattern on its weekly chart, culminating in a breakout in January 2024. This breakout was accompanied by above-average trading volume and a positive MACD indicator signal. Subsequent to the breakout, the stock initiated an upward movement, although it is presently undergoing a retest phase. The RSI currently resides in the overbought zone, suggesting a potential cooldown. Technical analysis suggests that a successful rebound from the retest and the establishment of upward momentum may move 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.
News for the day:
- GIFT City, India's international financial center, is seeking approval from the Reserve Bank of India (RBI) to establish a Real-Time Gross Settlement (RTGS)-like system for dollar payments. This move aims to enhance efficiency in dollar transactions within the Gift City ecosystem. The proposed system is expected to streamline and expedite dollar transactions, promoting a more seamless financial environment.
- The Reserve Bank of India (RBI) has imposed fines totalling nearly Rs 3 crore on State Bank of India (SBI), Canara Bank, and City Union Bank. The penalties were levied for non-compliance with various regulatory guidelines and norms. SBI faced fines for deficiencies in regulatory compliance, while Canara Bank and City Union Bank were penalized for lapses in the area of cybersecurity and fraud risk management.
- Reliance Industries and Disney reportedly may announce a merger between their media subsidiaries, Star India and Viacom18, this week. This strategic move aims to create a powerhouse in the Indian media and entertainment industry. The merged entity is expected to combine a diverse range of content and broadcasting assets, potentially reshaping the dynamics of the sector.
