Stock name: Sterling and Wilson Renewable Energy Ltd.
Pattern: Double top pattern and retest
Time frame: Daily
Observation:
The stock has been trending upward since October 2023. Between May and July 2024, it formed a double top pattern on its daily chart and broke out from the pattern on July 19, 2024, with above-average trading volume. After the breakout, the stock retested the breakout level and then resumed its downward movement before a second retest. Currently, it has closed below the breakout level again. According to technical analysis, if the stock gains downward momentum, it may see further decline, though additional confirmation is needed.
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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: CRISIL Ltd.
Pattern: Double bottom pattern
Time frame: Daily
Observation:
The stock has cooled down from its ATH forming a double bottom pattern on its daily chart from April to August 2024. While it hasn’t broken out from the pattern yet, it is nearing the breakout line, which could act as resistance. The stock recently showed a bullish MACD signal and is above the 50 RSI level. According to technical analysis, a breakout with strong momentum could 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 Karnataka government has ordered all its departments and entities to cease transactions and withdraw deposits from State Bank of India (SBI) and Punjab National Bank (PNB) by September 20, 2024, following disputes over the redemption of ₹22 crore linked to scams involving bank employees. Both SBI and PNB are in discussions with the state to resolve the issue amicably, but the matter is currently sub judice. The government's directive has come as a surprise to the banks, particularly as the banking sector faces challenges related to deposit growth.
- In July, India's textiles and apparel exports rose by 4.73% to USD 2,937.56 million, driven by strong demand for apparel. While textile exports remained stable at USD 1,660.36 million, apparel shipments surged by 11.84% to USD 1,277.20 million. The growth is attributed to increased market share in key regions like the US, EU, and UK. The Confederation of Indian Textile Industry (CITI) is optimistic about future export orders, especially with the support of recent Free Trade Agreements (FTAs) with Australia and the UAE, which are expected to boost export momentum further.
- Vedanta Ltd's board approved the sale of a 3.31% stake in Hindustan Zinc Ltd (HZL), expected to raise over Rs 8,000 crore. The proceeds will be used for debt repayment and capital expenditure, which is seen as a credit-positive move for Vedanta Resources Ltd's creditors. However, the sale reduces Vedanta's stake in HZL to 61.61%, potentially lowering future dividends from HZL, a key cash generator for the group. Despite the stake sale, Vedanta remains focused on debt reduction and managing its interest burden, although it has shelved plans to sell its steel business.
