Technical Analysis of AEGISCHEM & VEDL

1. Stock name: Aegis Logistics Ltd.

Pattern: Cup and handle pattern and retest

Time frame: Weekly

Observation:

From July 2021 to February 2024, the stock underwent a cup and handle formation on its weekly chart. In February 2024, it broke out from this pattern with significant trading volume. Following the breakout, the stock retested the breakout level before rebounding. Presently, it is on an upward trajectory, supported by a favourable RSI level. Technical analysis suggests that if the current momentum persists, the stock might continue its 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: Vedanta Ltd.

Pattern: Double bottom pattern

Time frame: Weekly

Observation:

Since April 2022, the stock experienced a swift decline, followed by the formation of a double bottom pattern on its weekly chart. Over the past two weeks, it has exhibited a notable upward trend, culminating in a breakout during April 2024 with substantial trading volume. Presently, the stock's RSI indicates it's deeply in the overbought zone. According to technical analysis, sustaining the breakout momentum may propel the stock further upwards.

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) Japanese banking giant MUFG is poised to acquire a significant 20% stake in HDB Financial Services, a subsidiary of HDFC Bank, for a hefty $2 billion. This deal, set to be finalized at an upcoming HDFC Bank board meeting, reflects a valuation ranging between $9 to $10 billion. Once sealed, it will mark one of the largest transactions in India's shadow banking sector. Currently, HDFC Bank holds a majority 95% ownership in HDB Financial, with the remaining 5% distributed among its employees through ESOPs. MUFG's move strategically positions it ahead of HDB Financial's anticipated IPO.

2) Tata Steel, JSPL, AM/NS, SAIL, and JSL have won Railways contracts worth ₹1,586.39 crore for Mild/Corten Steel. Bidding commenced in July 2023 and concluded recently. SAIL secures the lion's share in both tenders, providing 1.05 lakh metric tonnes of steel valued at ₹671.27 crore, while Tata Steel follows with a contract for 52,753 MT valued at ₹333.48 crore. The steel will be used in railway applications, with Indian Railways increasing its locomotive production target for fiscal 2025 by 27%.

3) Uno Minda initiates construction of a Rs 542 crore passenger vehicle alloy-wheel plant in Haryana's IMT Kharkhoda. The facility, spanning 94.32 acres, will have a monthly capacity of 1.2 lakh wheels and will be developed in phases over five years, with the first phase expected by FY26 Q2. Uno Minda's expansion plan aims to establish advanced mega-factories and consolidate existing facilities for operational efficiency.