Stock name: Dixon Tech

Pattern: Near a resistance

Time frame: Daily

Observation: The stock was in a downtrend and later formed a double bottom formation, indicating exhaustion in selling. Currently the stock is trading near the neckline resistance of the double bottom pattern, with also a small cup and handle being visible. If the stock closes and sustains above the 4020 levels, then we can see some good up-move in this stock. The target for double bottom pattern is measured as the distance between the bottoms and the neckline, taken from the breakout point.

However, if it is unable to do so, it may also be inferred that the up-move is a short-term pullback and the bear trend may still continue.

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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.

News for the day:
1) Shares of Techno Electric & Engineering Company (TEECL) zoomed more than 12% during the early trade today after the company bagged some orders. In a regulatory filing, the construction and engineering company announced that it has secured two new orders for FGD for a total consideration of Rs. 1,455 crores. Just a few days earlier, the company informed the bourses about another order win worth Rs. 680 crores in a separate regulatory filing.

2) The activity in the primary market has picked up of late, boosted by the rebound in equities in the past two months. Go Digit General Insurance, Concord Biotech and Kolkata-based Balaji Solutions have filed their draft red herring prospectus (DRHP) with the markets regulator SEBI on Tuesday to launch initial public offerings. These three companies could collectively raise around Rs. 7,500 crores through IPO’s.

3) As per a brokerage and research firm, the probable inclusions in Nifty Next 50 Index may include Adani Wilmar, IRCTC Ltd., Bharat Electronics Ltd (BEL) and Hindustan Aeronautics Ltd (HAL). Whereas the probable exclusions from the index as per it could be Lupin, Jubilant Foodworks; Zydus Lifesciences, Punjab National Bank and Steel Authority of India.