Stock name: Tube Investments of India Ltd.
Pattern: Head and shoulders pattern
Time frame: Daily
Observation:
Since the post-COVID period, the stock has been on an upward trend. Recently, it has stabilized, forming a head and shoulders pattern on its daily chart. The stock hasn't yet broken out of this pattern, with the neckline currently serving as support. The RSI is below 50, indicating weaker momentum. If the stock breaches the neckline and breaks out, it may move further downward according to technical analysis.
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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: Lemon Tree Hotels Ltd.
Pattern: Double top pattern
Time frame: Daily
Observation:
The stock experienced a prolonged bullish run but stabilized between April and August 2024, forming a double top pattern on its daily chart. On August 8, 2024, it broke out of this pattern with significant trading volume. The MACD indicator also showed a bearish signal. The stock continues its downward movement, but the RSI has entered the oversold zone, which could lead to consolidation or a retest. According to technical analysis, if the current momentum persists, the stock may continue to decline further.
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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:
- Indian banks are struggling as urban savers increasingly turn to higher-yield investments like stocks and mutual funds, leading to weaker deposit growth. Despite a brief uptick in deposits in mid-July 2024, concerns remain as credit growth outpaces deposits, raising liquidity risks. HDFC Bank's Managing Director and the RBI have flagged this issue, highlighting the need for banks to rethink strategies to attract deposits and manage the growing credit-deposit gap.
- India stands to gain $200-250 million in monthly readymade garment (RMG) export orders as Bangladesh, the world's second-largest exporter, faces economic challenges and political unrest, according to a CareEdge report. Historically, Bangladesh capitalized on China's declining market share, but India now has a chance to expand its presence in the global RMG market. The unrest in Bangladesh has already led to a 17% drop in its RMG exports, while India's exports grew by 4% in the same period. India's position may strengthen further with upcoming Free Trade Agreements and skilling programs.
- Jindal Steel and Power Ltd (JSPL) has reduced its dependence on Australian coking coal by over 50% through strategic diversification of its sourcing. This move is expected to lower manufacturing costs and improve supply chain efficiency. The shift aligns with government efforts to decrease reliance on specific countries for coking coal. JSPL plans to continue diversifying its coking coal sources in the coming months, enhancing availability and reducing logistics costs. The company operates two steel mills in Odisha and Chhattisgarh, with a combined capacity of 9.6 million tonnes.
