Pattern: Cup and handle pattern and retest

Time frame: Weekly

Observation:

Since its NSE listing in 2021, the stock has consistently trended downward. Between April 2022 and November 2023, a cup and handle pattern emerged on the weekly chart. The stock experienced a breakout in November 2023, accompanied by substantial trading volume. Although there was a modest upward movement post-breakout, the stock is currently undergoing a robust retest of the breakout level. With a favourable RSI level and positive signals on the MACD indicator during the breakout, technical analysis suggests that a successful bounce back from the retest may propel the stock further upward.

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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: Gujarat Fluorochemicals Ltd.

Pattern: Double bottom pattern

Time frame: Weekly

Observation:

From October 2022 onward, the stock has exhibited a downward trend and formed a double bottom pattern on its weekly charts between December 2022 and December 2023. In December 2023, the stock experienced a breakout from this pattern, accompanied by above-average trading volume. Following the breakout, the stock is presently sustaining its upward trajectory. According to technical analysis, the stock may move further upward if it can uphold its current momentum.

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) Tesla is expected to announce its plans for a manufacturing plant in Gujarat, India, during the Vibrant Gujarat Summit in January, with CEO Elon Musk in attendance. The Gujarat location aligns with Tesla's export-oriented strategy, and the company may invest up to $2 billion, contingent on a concessional duty of 15% on imported vehicles for the plant's first two years of operation. The Indian government is deliberating on import duty proposals, and Tesla aims to initially sell Model 3, Model Y, and a new hatchback in India.

2) Tata Power has acquired a 100% stake in Bikaner III Neemrana II Transmission, a special purpose vehicle (SPV) formed in June 2023, for Rs 18.6 crore. The SPV will be responsible for building, owning, operating, and transferring electrical power transmission systems between Bikaner and Neemrana in Rajasthan, with the acquisition involving cash consideration and settling outstanding debt.

3) Asian Infrastructure Investment Bank (AIIB) is set to lead a Rs 2,500 crore funding round in Mahindra-OTPP's Green InvIT. The funds will be utilized to refinance existing debt in solar projects under the InvIT, including the repayment of loans from Mahindra Susten.