Technical Analysis of FINPIPE & BATAINDIA

1. Stock name: Finolex Industries Ltd.

Pattern: Cup and handle pattern

Time frame: Weekly

Observation:

From October 2021 to April 2024, the stock's weekly chart has formed a cup and handle pattern formation. A breakout from this pattern occurred in early April 2024, backed by higher-than-average trading volume and a positive MACD indicator. Presently, the stock is undergoing a retest of the breakout level following the breakout. The Relative Strength Index (RSI) of the stock is currently at a favourable level. According to technical analysis, a successful bounce back from this retest may potentially propel the stock further upward.

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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: Bata India Ltd.

Pattern: Head and shoulders pattern

Time frame: Monthly

Observation:

The stock trended upwards until its peak in 2021, following which it experienced a decline. From October 2020 to February 2024, a head and shoulders pattern emerged on its monthly chart. February 2024 witnessed a breakout from this pattern, with slightly above-average trading volume. Presently, the stock is on a downward trajectory, accompanied by a low RSI level. Technical analysis suggests that if this current momentum persists, the stock may continue its downward 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.

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News for the day:

1) Hyundai and Kia team up with Exide Energy Solutions in India to localize EV battery production, focusing on lithium-iron-phosphate cells. This move supports their expansion plans for the Indian EV market and aims to pioneer domestically produced batteries. The collaboration is crucial for cost competitiveness and aligns with India's carbon neutrality goals.

2) ICICI Bank extends a Rs 2,675 crore debt facility to Tata Steel for three years to repay existing debt. Tata Steel raises Rs 2,700 crore through unsecured fixed-rate bonds at 7.79%, with Niva Bupa Health Insurance investing Rs 25 crore. Both investors are set to receive a bullet payment on March 27, 2027.

3) Voltas surpasses 2-million-unit sales in FY24, credited to consistent demand and robust distribution networks. This marks the first time a company in India's domestic market has achieved this milestone. Despite lower sales in the March quarter, Voltas sees a significant 72% volume growth in AC sales.