Stock name: Schaeffler India Ltd.
Pattern: Double top pattern and retest
Time frame: Daily
Observation:
The stock experienced a significant rise starting in March 2024. Recently, it stabilized and formed a double top pattern on its daily chart. A breakout from this pattern occurred on July 12, 2024, with above-average trading volume. Following the breakout, the stock moved downward but currently it is retesting the breakout level. At present the RSI level of the stock remains below 50. As per technical analysis, if the stock resumes its downward momentum after the retest, it may continue to 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: Caplin Point Laboratories Ltd.
Pattern: Cup and handle pattern
Time frame: Daily
Observation:
The stock has trended upward since April 2023. From March to July 2024, it formed a cup and handle pattern on its daily chart and is nearing the breakout line. The RSI is currently in a favourable zone. According to technical analysis, if the stock breaks out from the pattern with strong momentum, it may continue to rise.
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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:
- India's GST structure is set to move towards three tax rate slabs, as announced by CBIC chairman Sanjay Kumar Agarwal. The GST Council will finalize this plan in its next meeting. Additionally, a customs duty overhaul is planned to simplify the system and reduce disputes. The online gaming sector's GST contribution is increasing. The changes aim to streamline India's indirect tax structure, minimizing tax slabs and overhauling existing classifications under both GST and customs.
- Private life insurers in India are adjusting to new IRDAI regulations requiring surrender value from the first year on non-participating policies. HDFC Life, ICICI Prudential Life, and SBI Life are modifying commission structures and product mixes to protect margins. HDFC Life is restructuring payouts, ICICI Prudential Life is focusing on trial-based commissions, and SBI Life is maintaining its current structure. Despite these changes, insurers remain confident in sustaining growth, though some experts are sceptical about maintaining current margins amid increased competition and regulation.
- The Power Ministry announced a plan requiring a ₹6.67 lakh crore investment to meet electricity demand by 2031-32. The Central Electricity Authority (CEA) determined that coal and lignite installed capacity needs to reach 283 GW, up from the current 217.5 GW. The government aims to add at least 80 GW of coal-based capacity by 2031-32 while also boosting non-fossil fuel-based electricity generation to 50% by 2030, up from the current 45.5%.
