1. Stock name: Deepak Nitrite Ltd.

Pattern: Double bottom pattern and retest

Time frame: Weekly

Observation:

Since October 2021, the stock has exhibited a declining trend. Between April 2022 and December 2023, a double bottom pattern emerged on the weekly chart. In mid-December 2023, the stock experienced a breakout from this pattern, accompanied by above-average trading volume. Following the breakout, the stock has been ascending. However, currently, the stock has seen a slight retest of the breakout levels. Technical analysis suggests that if the stock can rebound from the retest the stock may see further 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: Exide Industries Ltd.

Pattern: Rounding bottom pattern

Time frame: Monthly

Observation:

Between August 2018 and March 2020, the stocks experienced a downward trend. Following that, a sideways movement occurred until recently when an upward trend emerged. This resulted in the formation of a rounding bottom pattern on the monthly chart spanning from September 2018 to December 2023. The stock successfully broke out of this pattern in December 2023, accompanied by above-average trading volume. Since the breakout, the stock has been moving upwards, and according to technical analysis, maintaining this momentum may lead to further upward 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.

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News for the day:

1) Sony is on the verge of abandoning its $10 billion merger with Zee Entertainment, citing Zee's failure to meet specified conditions over the past two years. The termination notice is expected to be officially sent by the end of this month, possibly as early as January 22nd, unless Zee agrees to crucial clauses. Despite ongoing discussions, the dispute revolves around issues such as Zee's financial performance, disagreements over leadership, and breaches of standstill agreements, creating a significant trust deficit between the parties involved.

2) Motorcycle manufacturer Royal Enfield, a unit of Eicher Motors Ltd, is set to invest Rs 3,000 crore over eight years in Tamil Nadu for the development of new products, including Electric Vehicles (EVs). The investment, formalized through a Memorandum of Understanding with the Tamil Nadu government, aims to generate around 2,000 direct and indirect jobs, with key provisions focusing on infrastructural support and regulatory facilitation.

3) Bandhan Bank has clarified that the National Credit Guarantee Trustee Company is auditing its loan claims under a guarantee scheme, not initiating an audit of the bank itself. The audit pertains to the Credit Guarantee Fund of Micro Units (CGFMU) claim, with the bank confident of recovering the amount after a preliminary sample audit and detailed explanations provided. The clarification follows a stock dip on Monday due to media coverage of the audit, and Bandhan Bank's shares rose by 3.17% post-clarification.