1. Stock name: eClerx Services Ltd.

Pattern: Rounding bottom pattern

Time frame: Daily

Observation:

After the COVID period until January 2022, the stock displayed a consistent upward trend, followed by a consolidation phase. Between January 2022 and October 2023, the stock has formed a rounding bottom pattern on its daily chart, leading to a breakout on October 5, 2023, supported by substantial trading volume. Presently, the stock is in the process of retesting the breakout level, with the RSI standing at a favorable level of around 60. According to technical analysis, a successful rebound from this retest may potentially drive the stock's further upward movement.

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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.

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2. Stock name: Solar Industries India Ltd.

Pattern: Cup and handle pattern

Time frame: Daily

Observation:

The overall trend of the stock has been in an upward direction post Covid. In the January to October 2023 period, the stock exhibited a clear cup and handle pattern on its daily charts. This pattern saw a breakout on October 6, 2023, marked by an above-average trading volume. Subsequently, the stock continued its ascent, and it's currently in the midst of retesting the breakout level. The Relative Strength Index (RSI) hovers around 60, indicating a favorable level. According to technical analysis, if the stock manages to rebound from this retest and gain momentum, it may potentially extend its 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.

News for the day:

1) HSBC has doubled its loan to a Reliance Industries subsidiary, providing £115 million for the renovation of Stoke Park estate, part of Mukesh Ambani's shift toward luxury real estate. This collaboration highlights HSBC's focus on India's growing market.

2) REC Ltd and Bank of India have entered a consortium arrangement to co-finance projects worth Rs 30,000 crore over the next five years, focusing on power, infrastructure, and logistics sectors. REC, a Maharatna company, specializes in long-term loans and financing for various sectors, with a loan book of Rs 4.54 lakh crore as of June 2023.

3) Polycab India's Q2 results show a robust 58.5% YoY increase in net profit, reaching Rs 436.89 crore, while its revenue surged by 27.71% to Rs 4,253.01 crore, primarily driven by volume growth in the wires and cables segment. The company also reported an EBITDA increase to Rs 608.9 crore, with an improved EBITDA margin of 14.4%, citing a favorable product mix and better operating leverage for the margin boost.