Stock name: BPCL

Pattern: At a multiyear support

Time frame: Weekly

Observation: The stock is trading in a broad range of 300 to 550 since 2016. We are having a look at the weekly time frame. The stock is currently trading very close to the multiyear support level and hence we can expect that the stock may bounce from here. However, if the stock breaks down this level, then it may become weak.

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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:

1) Q1 FY23 result update: Ambuja Cements: Revenue up 2.19% on QoQ basis and up 16% on YoY basis. PAT almost flat on QoQ basis and down 25% on YoY basis. EBIDTA margin also reduced from 26.5% to 14%.

2) The government today (20 July 2022) slashed the windfall tax on petrol, diesel, ATF and crude oil, following a decline in international rates of Oil. It reduced the windfall tax on diesel and aviation turbine fuel (ATF) by Rs. 2 a litre and scrapped a Rs. 6 per litre tax on export of petrol. The tax on ATF has been cut to Rs. 4 a litre from Rs. 6 and on diesel to Rs. 11 from Rs. 13 per litre. Further, the Rs. 23,250 per tonne additional tax on crude oil produced domestically has been cut to Rs. 17,000 per tonne.

3) After reporting a steep drop in new residential construction in the U.S. in the previous month, the Commerce Department released a report showing a continued decline in housing starts in the month of June. Housing starts slumped by 2% to an annual rate of 1.559 million after plunging by 11.9% to 1.591 million in May. Housing starts refers to the start of construction on a new residential housing unit in a particular period of time.

4) Canfin homes, Crisil, GSFC, Happiest Minds, HSCL, Hind Zinc, ICICI securities, IDBI Bank, Kajaria Cements, Megmani Fintech, Mphasis, Persistent, PVR, Quickheal Technology, RBL Bank, SRF are amongst the companies that will be declaring their results tomorrow.