1. Stock name: Zydus Lifesciences Ltd.

Pattern: Cup and handle pattern

Time frame: Weekly

Observation:

The overall trend of the stock has been in a positive direction. From July 2021 to December 2023, a cup and handle pattern emerged on the weekly chart. In December 2023, the stock successfully broke out from this pattern, accompanied by significant trading volume. Preceding the breakout, a favorable signal on the MACD indicator was observed. According to technical analysis, if the stock can sustain this breakout momentum it may see further upward movement.

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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: Chambal Fertilizers & Chemicals Ltd.

Pattern: Rounding bottom pattern

Time frame: Daily

Observation:

The stock exhibited a decline followed by a subsequent recovery between September 2022 and December 2023. This resulted in the formation of a rounding bottom pattern on its daily chart. On December 26th, the stock broke out from this pattern, accompanied by higher-than-average trading volume. Additionally, the MACD indicator provided a positive signal upon the pattern breakout. According to technical analysis, if the stock sustain momentum from this breakout, it may move further upward.

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) India's current account deficit (CAD) shrank to $8.3 billion, or 1% of GDP, in Q2 FY24, down from $9.2 billion or 1.1% in the preceding quarter, driven by a reduced merchandise trade deficit of $61.0 billion compared to $78.3 billion a year earlier. The improvement was also attributed to the growth of services exports, particularly in software, business, and travel services, as per data from the Reserve Bank of India.

2) Billionaire Gautam Adani and family intend to inject Rs 9,350 crore into Adani Green Energy Ltd (AGEL) to reduce the company's debt and support its goal of reaching 45 gigawatts by 2030. The investment is contingent on approval from regulatory authorities and shareholders, with a decision expected at the Extraordinary General Meeting on January 18, 2024.

3) Sebi proposes same-day and real-time settlement options, introducing T+0 and instant settlement cycles alongside the existing T+1 in the equity cash segment. Analysts foresee potential liquidity boosts but warn of impacts on brokers relying on interest income. The phased transition includes an optional T+0 settlement in the first phase and immediate trade-by-trade settlement in the second, drawing mixed reactions from industry experts.