Technical Analysis of NAM-INDIA & SONATSOFTW

1. Stock name: Nippon Life India Asset Management Ltd.

Pattern: Cup and handle pattern

Time frame: Weekly

Observation:

Between October 2021 and April 2024, the stock underwent a cup and handle formation on its weekly chart, culminating in a breakout at the start of April 2024. The breakout was supported by significant trading volume. Presently, the stock exhibits bullish signals on the MACD indicator. According to technical analysis, sustaining this breakout momentum may move the stock further in the 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.

2. Stock name: Sonata Software Ltd.

Pattern: Head and shoulders pattern

Time frame: Daily

Observation:

Following the COVID-19 pandemic, the stock displayed a notable uptrend. The stock consolidated and formed a head and shoulders pattern on its daily chart from December 2023 to April 2024. On April 15, 2024, the stock broke out of this pattern, backed by a bearish MACD indicator. The RSI of the stock are also currently at a low level indicating a bearish sentiment. Technical analysis suggests that if this downward trajectory continues, the stock may further decline.

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) Elon Musk's Starlink inches closer to approval in India after nearly three-and-a-half years of review, pending final clearance from the Home Ministry. The Telecom Ministry's nod precedes Musk's visit, with strict mandates ensuring data sovereignty and customer privacy. Musk's visit also hints at potential investments in India's electric vehicle sector, with preparations underway for Tesla's entry.

2) Fairfax's Odyssey Reinsurance injects Rs 500 crore debt into IIFL Finance for gold loans, offering secured bonds at 9.5% interest. The move comes amid RBI's ban on IIFL Finance for gold loans due to lending irregularities. However, there are no responses or official statements from IIFL Finance and Fairfax as they have remained unavailable.

3) Vedanta secures 11-year Rs 3,900 crore loan from PFC to expand its power business, aiming for a 4.8 GW capacity by FY27. The loan will primarily support acquisitions like Meenakshi Energy and Athena Power, reflecting Vedanta's focus on energy growth amidst ongoing demerger plans. Major investors like BlackRock and ADIA show confidence in Vedanta's strategy, which includes expanding renewable energy projects and mining operations.