1. Stock name: Reliance Industries Ltd.

Pattern: Cup and handle pattern and retest

Time frame: Daily

Observation:

The stock has maintained a sideways trend for an extended duration. Between July 2023 and January 2024, a cup and handle pattern emerged on the daily chart, followed by a breakout on January 10, 2024, supported by higher-than-average trading volume. The breakout was accompanied by a positive signal on the MACD indicator. Subsequently, the stock experienced an upward trajectory. Presently, it is undergoing a retest, and a successful rebound from this test may lead to additional upward momentum based on technical analysis.

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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: Oil & Natural Gas Corporation Ltd.

Pattern: Inverse head and shoulder pattern

Time frame: Monthly

Observation:

From October 2018 to July 2023, the stock exhibited an inverse head and shoulders pattern on its monthly chart. The breakout from this pattern occurred in July 2023, propelling the stock upwards. Notably, it has surpassed a significant resistance level near 200 and is currently displaying strong momentum. Technical analysis suggests that if the stock sustains its present momentum, then it may see a continued upward trend.

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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) Sony has called for an urgent board meeting to discuss the Zee Entertainment merger, as the $10 billion deal faces potential termination without a last-minute breakthrough. The meeting aims to address critical issues and salvage the agreement.

2) Sun Pharma is set to acquire the remaining 21.5% stake in Taro Pharmaceuticals for Rs 2,892 crore. This move enhances Sun Pharma's ownership in Taro, strengthening its position in the pharmaceutical industry. The acquisition reflects Sun Pharma's strategic commitment to expanding its presence in the global pharmaceutical market.

3) Bharti Enterprises' Sunil Mittal notes that the Indian narrative is prominently featured at Davos, highlighting the country's significance on the global stage. He emphasizes India's economic resilience and the transformative changes taking place across various sectors. Mittal's remarks underscore the growing attention and interest in India's evolving role in the international landscape.