Stock name: DMART

Pattern: Double bottom pattern

Time frame: Weekly

Observation:

The stock has been into a big price correction and is currently ~45% down from its all-time high. It has recently bounced from a big support from where it bounced 40% in 2022 and hence a double bottom pattern may get formed in the counter.

As per technical analysis, a buy entry is triggered only when the stock breaks out of the neckline of such a pattern and the targets are equal to the distance between the bottoms and the neckline.

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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) Auto stocks gained today on the robust passenger vehicle sales in FY23, which saw a 27% YoY rise. The sales grew to a record 3.9 million units in the year ended 31 March 2023.

2) Shares of Rail Vikas Nigam Limited jumped 8% today after the company bagged multiple orders worth Rs. 721 crores. RVNL emerges as the lowest bidder (L1) from NHAI for construction of six-lane elevated Kona expressway from in the state of West Bengal on EPC mode. The cost of the project is Rs. 720.67 crore, the company said in a filing.

3) Saudi Arabia, in a surprise move has decided to cut oil production by 5,00,000 million barrels per day.