Stock name: Punjab National Bank
Pattern: Head and shoulders pattern and retest
Time frame: Daily
Observation:
The stock has been on an upward trend since the COVID market crash. From February to August 2024, it formed a head and shoulders pattern on the daily chart, with a breakout on August 5th, supported by slightly above-average trading volume and a bearish MACD. However, the stock has faced a retest immediately after the breakout, indicating that it requires additional confirmation. According to technical analysis, if the stock gains downward momentum, it may continue to decline.
You may add this to your watch list to understand further price action.
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: ITC Ltd.
Pattern: Cup and handle pattern
Time frame: Daily
Observation:
Since the post-COVID market crash, the stock has generally trended upward. Recently, it has stabilized, forming a cup and handle pattern on the daily chart from January to August 2024. The stock has yet to break out from this pattern and is currently hovering near the breakout line, which may act as resistance. The RSI levels are currently in a favourable zone. According to technical analysis, if the stock achieves a breakout with substantial momentum, it may continue to move upward.
You may add this to your watch list to understand further price action.
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 Power has incorporated a new subsidiary, Adani Power Middle East Ltd., in Abu Dhabi to invest in the power and infrastructure sectors. The subsidiary, fully owned by Adani Power, has an authorized capital of $27,000. This move aligns with Adani Power’s strategy to expand its presence in the thermal power sector, both in India and internationally. Recently, Adani Power signed an ₹11,000 crore contract with Bharat Heavy Electricals Limited (BHEL) to develop three supercritical thermal power projects in Rajasthan and Madhya Pradesh, each with a capacity of 2x800 MW.
- Hindustan Unilever (HUL) has been issued a tax demand of ₹962.75 crore by the Income Tax Department for failing to deduct Tax Deducted at Source (TDS) on a ₹3,045 crore payment made to acquire intellectual property rights from GlaxoSmithKline (GSK). The demand includes ₹329.33 crore in interest. The issue relates to the acquisition of the Horlicks brand and other health drink brands from GSK. HUL plans to appeal the order, asserting that it has a strong case based on judicial precedents and intends to recover the tax from relevant parties.
- Vedanta Ltd has assembled a ₹30,000 crore war chest from various funding sources, including recent fundraises and existing cash reserves, to reduce debt and drive growth. The funds will support debt reduction, transformational projects, and a planned demerger aimed at unlocking value and attracting major investments into its independent businesses.
