Technical Analysis of MUTHOOTFIN & BAYERCROP

1. Stock name: Muthoot Finance Ltd.

Pattern: Cup and handle pattern

Time frame: Weekly

Observation:

The stock has shown a consistent upward trend. During the period from January 2022 to April 2024 the stock has formed a cup and handle pattern on the weekly chart. In the first week of April 2024, the stock broke out from this pattern, backed by above-average trading volume and a bullish MACD indicator. According to technical analysis, the stock may sustain its upward momentum if it maintains its current trajectory.

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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: Bayer Cropscience Ltd.

Pattern: Double bottom pattern and retest

Time frame: Weekly

Observation:

Since September 2020, the stock has experienced a decline, followed by stabilization, marking a double bottom pattern on its weekly chart. December 2023 witnessed a breakout from this pattern. However, post-breakout, the stock underwent a rigorous retest, slipping below the pattern's neckline. Presently, the stock has rebounded from the retest, accompanied by a favourable RSI level. As per technical analysis, if the stock continues with the current momentum, it may see continuation of the upward trajectory.

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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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News for the day:

1) Hero MotoCorp and CG Motors have inaugurated an assembly unit in Nepal, capable of producing 75,000 units annually, including popular models like Xpulse 200 4V and Super Splendor. This venture aims to attract investments and create job opportunities in Nepal, while Hero MotoCorp plans to expand its sales and service network in the country.

2) Tesla cuts prices in China amid stiff competition, while Elon Musk delays his India visit. Model 3 now starts at 231,900 yuan, down from 245,900 yuan, and Model Y at 249,900 yuan, reduced from 263,900 yuan. The move follows incentives introduced to counter rivals like BYD. Despite India's favourable EV policies, Tesla faces challenges globally, with falling stock prices and Musk's postponed plans.

3) HPCL plans to establish an international oil trading desk as part of its Visakh Refinery Modernisation Project, aiming to enhance capacity and distillate yields. The desk will enable real-time procurement of crude oil from global markets, potentially reducing import costs. HPCL is finalizing the desk's location as it progresses with the modernization project, set to increase petrol and diesel production with BS-VI specifications.