Technical Analysis of IRCTC & MPHASIS

1. Stock name: Indian Railway Catering And Tourism Corporation Ltd.

Pattern: Cup and handle pattern and retest

Time frame: Weekly

Observation:

From October 2021 to April 2024, the stock formed a cup and handle pattern on its weekly chart, with a breakout occurring in the second week of April 2024. The breakout was accompanied by average trading volume and a bullish MACD indicator. Subsequently, the stock has faced heavy retest of the breakout and it is presently trading below the breakout level. The RSI has cooled off due to the retest, reaching a favourable level. According to technical analysis, a rebound from the retest might prompt an upward movement in the stock.

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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.

2. Stock name: MphasiS Ltd.

Pattern: Double top pattern and retest

Time frame: Daily

Observation: 

Since March 2023, the stock has steadily risen, stabilizing between December 2023 and March 2024, displaying a double top pattern on its daily chart. March 2023 saw a breakout from this pattern, accompanied by above-average trading volume. Following the breakout, the stock retested its breakout level once before resuming a downward trajectory. Presently, the stock's RSI levels are notably low. As per technical analysis, if current momentum persists the stock may move further downwards.

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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News for the day:

1) Tata Motors plans to use a new $1 billion plant in Tamil Nadu to manufacture Jaguar Land Rover (JLR) luxury cars, sources disclosed. While the company previously announced the investment without specifying models, this move indicates an expansion in production capacity. Official confirmation on which JLR models will be produced is pending, with Tata Motors refraining from commenting on the speculation.

2) Nestle may encounter Indian regulatory action due to sugar levels in infant milk; brand responds with explanations. A probe found regional disparities in sugar content, prompting Nestle India to defend its practices, emphasizing compliance and ongoing efforts to reduce added sugars. WHO and health experts raise concerns about public health implications, while Nestle pledges to further reduce sugar levels without compromising safety or quality.

3) Hindustan Zinc, part of Vedanta Group, rises as the world's third-largest silver producer, with Sindesar Khurd Mine now ranking second globally. Its 5% production increase is attributed to enhanced ore output and grades, reinforcing its pivotal role in the global silver market amid the energy transition. As the world's second-largest integrated zinc producer, Hindustan Zinc commands 75% of India's zinc market, with headquarters in Udaipur and operations across Rajasthan.