Technical Analysis of ROUTE MOBILE & REDINGTON

1. Stock name: Route Mobile Ltd.

Pattern: Double bottom pattern and retest

Time frame: Weekly

Observation:

The stock marked its debut on the NSE on September 21, 2020, initiating its journey in the market. Following its listing, the stock initially experienced an upward trajectory until October 2021. However, from that point onward, it entered a descending trend that persisted until June 2022. During a period of slight consolidation, spanning from March 7, 2022, to June 12, 2023, the stock formed a double bottom pattern on its weekly chart. A notable breakout candle emerged within this pattern in June 2023, accompanied by substantial trading volume. Although the stock initially ascended post-breakout, it subsequently underwent a significant retesting phase. Currently, the stock remains engaged in retesting the breakout level. According to technical analysis, a successful rebound from this retest, coupled with an increase in momentum, 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.

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2. Stock name: Redington Ltd.

Pattern: Double top pattern and retest

Time frame: Weekly

Observation:

In the aftermath of the COVID market crash, the stock embarked on a recovery journey, witnessing an upward surge. Recently, it underwent a brief phase of consolidation. Notably, between November 2022 and July 2023, the stock exhibited a double top pattern on its weekly charts. Towards the conclusion of July, there was a significant breakout candle accompanied by substantial trading volumes. Following this breakout, the stock experienced a retest before resuming its descent. According to technical analysis, if this downward momentum persists, the stock may continue to 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.

News for the day:

1) Bank of Baroda is actively seeking buyers for its New Zealand subsidiary, Bank of Baroda (New Zealand) Ltd (BoB NZL), and has reached out to potential investors and investment banks for assistance. BoB NZL, founded in 2008, holds the distinction of being the first Indian bank in New Zealand, with branches in Auckland and Wellington.

2) The Supreme Court has requested a response from the Competition Commission of India (CCI) regarding MRF Ltd's appeal challenging the NCLAT's order to reconsider and re-calculate the fines imposed on tire companies for alleged cartelization and price manipulation, which had resulted in penalties exceeding ₹1,788 crore in August 2018.

3) IL&FS Financial Services (IFIN) has approved an interim distribution payout of ₹807 crore, the second this year, making the total interim payouts by IFIN ₹4,007 crore. This follows a revised distribution framework approved by the National Company Law Appellate Tribunal (NCLAT) in May 2022, enabling interim fund release to eligible creditors, including banks and public debenture holders.