Technical Analysis of COROMANDEL & ACI

1. Stock name: Coromandel International Ltd. 

Pattern: Cup and handle pattern

Time frame: Weekly

Observation:

The stock has exhibited a consistent upward trend, forming a cup and handle pattern on its weekly chart from August 2022 to December 2023. In the early days of December 2023, the stock broke out of this pattern with a notable increase in trading volume. Following the breakout, it has maintained its upward movement. The positive signal from the MACD indicator just before the breakout further supports the potential for continued upward momentum. According to technical analysis, if the current pace is sustained, the stock may see ongoing 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: Archean Chemical Industries Ltd.

Pattern: Cup and handle pattern and retest

Time frame: Daily

Observation:

Since the beginning of 2023, the stock has exhibited a sideways trend. Notably, between October and December 2023, a cup and handle pattern materialized on its daily chart, culminating in a breakout on December 21, 2023. Despite the index's RSI indicating a positive level, the stock underwent a substantial retest of the breakout level. According to technical analysis, the stock may see a further upward movement if the stock successfully rebounds from the retest, leveraging that momentum.

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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.

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News for the day:

1) Godrej Properties, the real estate arm of the Godrej Group, has purchased a 4-acre land in Yeshwanthpur, Bengaluru, intending to develop a high-end residential project with a revenue expectation exceeding Rs 1,000 crore. The project is projected to encompass over 7 lakh sq ft of saleable area, featuring premium residential apartments in various configurations.

2) The Ministry of Heavy Industries has extended the Automobile and Auto Components Production Linked Incentive (PLI) Scheme by one year, applicable for five consecutive financial years from FY24 to 2027-28. The decision, approved by the Empowered Group of Secretaries, includes provisions for disbursement in FY24-25 and eligibility until March 31, 2028. A level playing field is ensured by withholding incentives if companies fail to meet determined sales value thresholds, with eligibility restored in the following year upon achieving a 10% year-on-year growth.

3) Ashok Vaswani, a digital banking pioneer with experience at Barclays and Citigroup, has taken over as the Managing Director and CEO of Kotak Mahindra Bank. Known for reshaping Barclays' retail strategy post-2008 financial crisis, Vaswani faces challenges in ensuring stability, scaling commercial banking, and maintaining profitability at Kotak Mahindra Bank, which reported a 24% increase in net profit to ₹3,191 crore in the second quarter.