1. Stock name: Indian Bank

Pattern: Rounding bottom pattern

Time frame: Monthly

Observation:

Over the extended timeframe spanning from December 2017 to September 2023, the stock experienced an initial decline followed by an upward trend, resulting in the development of a rounding bottom pattern on its monthly charts. A breakout candle emerged from this pattern in September 2023, accompanied by above-average trading volumes, signifying confirmation. The stock appears to be persisting in the direction of this breakout in the current month. According to technical analysis, if the stock can maintain this momentum, it move further in upward direction.

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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: Dr. Lal Path Labs Ltd.

Pattern: Cup and handle pattern

Time frame: Daily

Observation:

Since approximately April 2022, the stock has been trading in a sideways fashion. Notably, from December 2022 to September 2023, the stock has established a cup and handle pattern on its daily chart. On September 29, 2023, a breakout candle emerged from this pattern, marked by above-average trading volume. The stock currently maintains an RSI of about 65, indicating strong price momentum. According to technical analysis, if the stock can sustain this momentum, it may see further upward movement.

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) Indian companies are experiencing the highest level of credit rating upgrades in a decade, driven by improved financials and reduced default risks, although the pace of upgrades has slowed. This trend is particularly pronounced in sectors like infrastructure, automotive, and cement, indicating a potential revival in private-sector capital expenditure. However, merchandise exporters, including textiles, jewelry, and specialty chemicals firms, are grappling with global trade challenges.

2) Adani Wind, a division of Adani New Industries (ANIL), is allocating ₹2,000 crore for a phased expansion of wind energy capacity. They aim to reach 5 GW capacity in five years and subsequently scale up to 10 GW by 2030, Its current capacity is at 1.5 GW.

3) Reliance Jio has successfully secured nearly $2 billion in one of India's largest offshore loans for FY24 to finance its purchase of 5G network equipment from Nokia. This loan is facilitated by HSBC. Finnvera, the Finnish export credit agency, provided insurance coverage for the deal, reducing Jio's overall funding costs.