1. Ajanta Pharmaceuticals Ltd.

Pattern: Cup and handle pattern and breakout

Time frame: Monthly

Observation:

Since 2013, the stock has exhibited an upward trend until 2017, after which it experienced a correction and began moving sideways. During this sideways phase, it formed a bullish cup and handle pattern on its monthly charts. Notably, in July 2023, the stock recorded a breakout candle with substantial trading volumes. The MACD line has also recently crossed its baseline. As per technical analysis, if the stock can sustain this breakout level, it may in an upward trajectory.

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.

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2. Bank of India

Pattern: Double bottom pattern and retest

Time frame: Daily

Observation:

Following the rally of Oct-Nov 2022, the stock experienced a correction in Dec 2022. Lately, it has been consolidating sideways on the daily chart, forming a bullish double bottom pattern. Today, on 1st August, the stock is attempting a breakout from this pattern. As per technical analysis, if the stock is successful in this breakout and sustains it the stock may further move upwards.

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:

1) The Centre raises windfall tax on crude to Rs 4250 per tonne and imposes a duty of Rs one per litre on diesel exports, effective from August 1. Export duty remains nil on petrol and Aviation Turbine Fuel (ATF).

2) Reliance Industries and Brookfield sign a pact to enhance renewable energy manufacturing in Australia, focusing on PV modules, long-duration battery storage, and wind energy components to reduce costs and promote decarbonization.

3) Bank lending in India increased by 16.3% in June, driven by strong consumer demand for homes, cars, vacations, and education, leading to a significant share of total bank credit going to retail customers. This robust consumer demand is expected to contribute to sustained economic expansion in the country for the foreseeable future.