Technical Analysis of RECLTD & TATAMOTORS

1. Stock name: REC Ltd.

Pattern: Flag and pole pattern

Time frame: Daily

Observation:

After a prolonged consolidation phase, the stock witnessed a significant upward movement. From October to December 2023 the stock moved rapidly in the upward direction. Subsequently, it entered a consolidation period until January 2024, resulting in the formation of a flag and pole pattern on its daily chart. The breakout from this pattern occurred on January 29, 2024, supported by above-average trading volume. Notably, a positive signal on the MACD indicator before the breakout also supports the breakout. According to technical analysis, if the stock is able to maintain this breakout momentum it may continue the upward momentum.

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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: Tata Motors Ltd.

Pattern: Flag and pole pattern

Time frame: Daily

Observation:

The stock has maintained an overall upward trend. It has seen a significant surge between December 21, 2023, and January 2, 2024. Following this ascent, the stock entered a consolidation phase, resulting in the formation of a flag and pole pattern on its daily chart. The stock has registered a breakout from this pattern on January 29, 2024 which was accompanied by above-average trading volume. Additionally, the MACD indicator is on the verge of giving a positive signal. According to technical analysis, the stock may see further upward movement if it can sustain 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) ITC reported an 11% increase in net profit for Q3, surpassing street expectations. The company's Q3 performance exceeded market predictions, as disclosed in their recent financial report. This positive outcome highlights ITC's robust financial performance during the quarter.

2) Tata Power has suggested tariff revisions in Mumbai, with a notable increase for lower-end consumers. The proposed changes aim to address cost challenges in the power sector. The adjustments, if approved, could result in a significant impact on electricity costs for various consumer segments in Mumbai.

3) GAIL (India) has entered a long-term LNG deal with UAE's ADNOC Gas. The agreement strengthens the collaboration between the two companies in the liquefied natural gas sector. This deal is part of GAIL's efforts to secure a reliable supply of LNG to meet India's growing energy demand.