Stock name: Tata Elxsi Ltd.
Pattern: Head and shoulders pattern
Time frame: Weekly
Observation:
After COVID-19, the stock showed a strong upward trend but recently stabilized into a head and shoulders pattern on its weekly chart. In April 2024, it broke out of this pattern and has since been moving downward with a low RSI. Technical analysis indicates that if the stock maintains its current momentum, 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: CSB Bank Ltd.
Pattern: Double top pattern and retest
Time frame: Weekly
Observation:
The stock experienced an upward trend starting in June 2022. Later on the stock has stabilised and formed a double top pattern from November 2023 to May 2024. In May 2024, it broke out of this pattern with above-average trading volume. Currently, it is retesting the breakout level, but its RSI is very low. Technical analysis suggests that if the stock completes the retest and resumes its downward momentum, it may decline further.
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:
- Kotak Mahindra Bank received RBI approval to sell a 70% stake in its general insurance arm to Zurich Insurance Company. Zurich had announced plans in November to acquire a 51% stake initially, followed by an additional 19% within three years for Rs 5,560 crore. All necessary regulatory approvals are now in place. Following the news, Kotak Mahindra Bank's shares rose 4.89% to Rs 1,718.75 on the BSE. The Competition Commission of India (CCI) also approved the acquisition earlier this month.
- The government is seeking a new chief for Indian Oil Corporation (IOC) as current chairman SM Vaidya's term ends soon. Despite the petroleum ministry's recommendation, the prime minister's office rejected an extension for Vaidya. The selection process, led by a committee, began on election verdict day, raising speculation. The job criteria exclude Vaidya, who is 61, but the committee may relax requirements for exceptional candidates.
- Godrej Properties sold a 5% stake in Godrej Green Homes to Godrej Fund Management and Investment Advisors for Rs 46.70 crore. This related party transaction, conducted at arm's length with fair valuation, ensures the sale price is equivalent to that for a non-related party. The announcement led to a 3.4% increase in Godrej Properties' shares, closing at Rs 2,666.95.
