Stock name: Sundram Fasteners Ltd.
Pattern: Double bottom pattern and retest
Time frame: Daily
Observation:
The stock has declined since October 2023 but stabilized between February and May 2024, forming a double bottom pattern on its daily chart. A significant breakout occurred on May 15, 2024, supported by above-average trading volume. However, the stock has since retested the breakout level. Currently, the RSI has cooled to a favourable zone. Technical analysis suggests that if the stock rebounds from this retest, it may continue to rise.
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: Divi's Laboratories Ltd.
Pattern: Inverse head and shoulders pattern
Time frame: Weekly
Observation:
Since October 2021, the stock has been declining but formed an inverse head and shoulders pattern on its weekly chart between May 2022 and May 2024. It broke out of this pattern at the end of May 2024, supported by a significant gap-up opening the following week. The RSI level is currently high. Technical analysis indicates that if the stock maintains its momentum, it may see further upward movement.
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:
- United Breweries (UBL), AB-InBev, and Carlsberg have launched the Brewers' Association of India (BAI) with the World Brewing Alliance (WBA). Aiming to drive innovation, moderation, and sustainability, the BAI will address industry growth barriers and promote responsible drinking. Together, these companies control 85% of India's beer market. Vinod Giri will lead BAI from June 1, 2024.
- State Bank of India (SBI) is selling the personal guarantees provided by Nikhil Gandhi, former promoter of Reliance Naval and Engineering, with a reserve price of ₹3.48 crore. As of May 31, 2024, SBI's outstanding principal dues are ₹1,160 crore, with total dues amounting to ₹3,512 crore. This sale, the largest in the secondary market for personal guarantees, highlights the minimal recovery expected compared to the claim amount. The auction is set for June 25, with expressions of interest due by May 31.
- Power Mech Projects has secured a Rs 563 crore order from BHEL to construct a nuclear power plant at the Kaiga Atomic Power Project. This marks the company's entry into the nuclear sector. The construction will be focusing on civil, structural, and architectural works for units 5 and 6. PMPL's Chairman, Sajja Kishore Babu, emphasized the project’s role in expanding nuclear power, which the government aims to increase to 22,480 MW by 2031.
