Technical Analysis of COLGATE PALMOLIVE & EICHER MOTORS

1. Stock name: Colgate Palmolive (India) Ltd.

Pattern: Flag and pole pattern

Time frame: Daily

Observation:

Following its recovery from the COVID-induced market crash, the stock underwent an extended period of consolidation. From June 26, 2023, to July 28, 2023, the stock experienced a significant upward movement following this consolidation phase. Subsequently, between July 28, 2023, and September 26, 2023, the stock reverted to a consolidation mode, resulting in the formation of a flag and pole pattern on its daily chart. On September 26, 2023, the stock registered a breakout candle from this pattern, accompanied by trading volumes above the average. Both RSI and MACD indicators are favourably aligned with this breakout. In accordance with technical analysis, should the stock manage to sustain this momentum, it may move in an upward direction.

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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2. Stock name: Eicher Motors Ltd.

Pattern: Ascending triangle pattern

Time frame: Daily

Observation:

Since its steep decline in June 2023, the stock has exhibited stability from July 10th to September 26th. During this interval, the stock has seen a sideways pattern, shaping an ascending triangle pattern on its daily charts. On September 26, 2023, a breakout candle emerged from this pattern, backed by substantial trading volume. With the stock's RSI hovering around 55, there is room for further gains before entering the overbought territory. According to technical analysis, if this momentum is sustained, the stock may move in an upward trajectory.

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) The Abu Dhabi Investment Authority (ADIA) plans to invest $600 million in Reliance Retail Ventures (RRVL), led by Mukesh Ambani, at significantly increased valuations compared to the previous round. This investment comes as RRVL, with a market value of $100 billion, solidifies its position as the 12th largest global retail giant, posting annual revenue of INR 2.6 trillion ($35 billion) in FY23.

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