1. Stock name: Bank of India

Pattern: Cup and handle pattern and retest

Time frame: Monthly

Observation:

Starting in June 2020, the stock initiated a recovery phase after a prolonged downward trend. Between March 2021 and September 2023, it has seen a cup and handle pattern on its monthly chart. A breakout from this pattern occurred in September 2023, complemented by above-average trading volume. Presently, the stock is undergoing a retest of this breakout, and its RSI stands at a favorable level. According to technical analysis, a successful rebound from this retest and the continuation of the momentum could 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.

--------------------------------------------------

2. Stock name: Tata Chemicals Ltd.

Pattern: Head and shoulder pattern

Time frame: Daily

Observation:

Throughout 2023, the stock remained in a sideways trading pattern. However, between July and October 2023, it formed a head and shoulders pattern on its daily chart. On October 23, 2023, there was a breakout from this pattern, accompanied by increased trading activity. The stock subsequently followed the breakout direction. Based on technical analysis, if this momentum is sustained, the stock could experience further downward movement.

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.

News for the day:

1) AU Small Finance Bank will acquire Fincare Small Finance Bank in an all-share deal and merge the two entities, with shareholders of Fincare Small Finance Bank receiving 579 equity shares of AU Small Finance Bank for every 2,000 shares held. The merger is set to take effect on February 1, 2024, subject to regulatory approvals.

2) Reliance Retail is reportedly in discussions with Louis Vuitton's parent company, LVMH, to acquire the rights to Sephora's India business, and the deal is nearing completion, according to sources cited by ET Now.

3) Punjab Energy Development Agency (PEDA) has signed an MoU with Hindustan Petroleum Corporation Limited (HPCL) to establish 10 compressed biogas projects and other renewable energy initiatives in the state, creating over 600 direct job opportunities and approximately 1,500 indirect employment opportunities. These projects aim to mitigate straw burning, reduce emissions, and support rural entrepreneurship, with HPCL investing about Rs 600 crore in the initial 10 CBG projects.