Stock name: Polycab India Ltd.
Pattern: Head and shoulders pattern
Time frame: Daily
Observation:
The stock experienced a significant rally in 2024. Recently, it stabilized and formed a head and shoulders pattern on its daily chart. Around July 19, 2024, it broke out from this pattern with above-average trading volume. Currently, the stock's RSI is very low. According to technical analysis, if the stock maintains its current momentum, it may continue to move downward.
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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: Bayer Cropscience Ltd.
Pattern: Flag and pole pattern
Time frame: Daily
Observation:
The stock has seen a significant upward movement in the month of June 2024. In July, it stabilized and formed a flag and pole pattern on its daily chart. Currently, the stock is consolidating and has yet to break out from this pattern. This consolidation has also helped the RSI levels to drop from the overbought zone to a more favourable range. According to technical analysis, a breakout with strong momentum may lead to 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 Indian government's budget focuses on infrastructure, rural development, and tax savings, expected to boost rural demand for consumer goods and two-wheelers. Job creation aims to increase consumption in smaller cities, despite higher capital gains taxes potentially limiting spending. FMCG executives see the budget as increasing disposable income and demand. FMCG stocks surged, with significant gains for ITC, Tata Consumer Products, Godrej Consumer Products, and Dabur India. Enhanced rural development and road connectivity allocations support this positive outlook.
- Paytm's parent company, One 97 Communications, has partnered with Axis Bank to offer point of sales (POS) solutions and card payment machines to banks and merchants. Paytm's EDC devices provide store management services like inventory management and CRM. This partnership aims to enhance transaction efficiency and customer engagement, benefiting both companies. Axis Bank sees this as a way to expand their merchant acquiring portfolio and provide more payment solutions. This collaboration is expected to extend Paytm's technology reach and support merchants' business growth.
- United Spirits is investing in new growth areas by acquiring stakes in non-alcoholic and coffee-based alcohol companies. The company will acquire 15% of V9 Beverages, which sells India's first distilled non-alcoholic spirits like Sober Gin, Sober Rum, and Sober Whiskey. Additionally, United Spirits will purchase 25% of Indie Brews and Spirits, the maker of Quaffine, India's first cold brew coffee liqueur. This strategy aligns with United Spirits' goal of exploring new growth opportunities.
