Stock name: NMDC

Pattern: Cup and Handle pattern

Time frame: Daily

Observation:

NMDC stock has formed a cup and handle pattern in the daily time frame. This is a bullish continuation pattern and once the stock crosses the neckline with good support from the volumes, the price is said to cover the distance equal to the distance between the bottom of the cup and the neckline, distance being considered from the neckline.

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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) NMDC: Company production seen at 3.61 MT Vs 3.95 MT (YoY)

2) Shares of Miniratna state-owned MOIL rallied over 5% to Rs. 170 in today’s intraday trade on BSE after the company said its December production stood at 141,321 tonnes, an increase of 18% from November.

3) After weak flat listing and further slide in of Elin Electronics shares on Friday, big investment firms like Morgan Stanley Asia (Singapore), Societe General and Copthall Mauritius Investment have offloaded their respective shareholding in the company.

4) The Supreme Court today held the demonetisation of high-value currency notes in November 2016 valid.