1. Stock name: Indigo Paints Ltd.

Pattern: Cup and handle pattern and retest

Time frame: Daily

Observation:

Listed on February 2nd, 2021, the stock has exhibited a consistent downward trajectory. However, starting from November 2022, it entered a phase of consolidation, showing sideways movement. During this phase, the stock's daily charts revealed the formation of a bullish cup and handle pattern. This pattern saw a breakout on July 28th, accompanied by higher-than-average trading volumes, and is currently undergoing a retesting of this breakout level. Despite the RSI initially entering the overbought zone during the breakout, it has now stabilized around 50, indicating solid price movement. According to technical analysis, a successful rebound from the retest may show an upward movement in the stock.

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. Stock name: Hindustan Aeronautics Ltd.

Pattern: Flag and pole pattern

Time frame: Daily

Observation:

Since November 2020, the stock has displayed a consistent upward trend. It started around 700 in that period and has sustained this climb till the present with its price around 4000. Notably, there was a sharp surge between May 30th, 2023 and June 19th, 2023. Following this, it entered a phase of consolidation that continues to this day. During this period, it has formed a flag and pole pattern on its daily charts. A breakout candle emerged from this pattern on August 23rd, 2023, accompanied by higher-than-average trading volumes, indicating a potential shift. The stock's RSI at approximately 65, signifying robust price movement, and the MACD line recently crossing the baseline from below. As per technical analysis if the stock is able to sustain this momentum it may move further 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) Chandrayaan-3, India's ambitious lunar mission, has triumphantly achieved a soft landing on the Moon's surface on August 23, 2023, marking India as the fourth country to master this technology and first to reach the lunar south pole. Following a previous unsuccessful attempt in 2019 and Russia's recent failed mission, Chandrayaan-3's successful landing heralds a significant achievement for India, impacting both its economy and technological advancement. This achievement comes after a 41-day journey and a pivotal 15-minute descent manoeuvre.

2) Qatar's Investment Authority invests Rs 8,278 crore for a 1% stake in Reliance Retail Ventures, valuing it at Rs 8.28 lakh crore. Reliance Retail's rapid growth has made it a major part of Reliance Industries Ltd, operating India's largest retail network. This investment aligns with Reliance Retail's expansion plans and showcases its growing global value.

3) Qatar's Investment Authority invests Rs 8,278 crore for a 1% stake in Reliance Retail Ventures, valuing it at Rs 8.28 lakh crore. Reliance Retail's rapid growth has made it a major part of Reliance Industries Ltd, operating India's largest retail network. This investment aligns with Reliance Retail's expansion plans and showcases its growing global value.