Technical Analysis of FSL & UBL

1. Stock name: Firstsource Solutions Ltd.

Pattern: Cup and handle pattern

Time frame: Weekly

Observation:

Between July 2021 and April 2024, the stock exhibited a cup and handle formation on its weekly chart. April 2024 saw a significant breakout from this pattern, accompanied by substantial trading volume. Presently, the stock's RSI level resides within a favourable range, while also displaying a bullish MACD indication. Technical analysis suggests that if the stock sustains its breakout momentum, it may potentially ascend further.

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: United Breweries Ltd.

Pattern: Cup and handle pattern

Time frame: Weekly

Observation:

From December 2022 and April 2024, the stock displayed a cup and handle formation on its weekly chart, forming in a breakout in April 2024, backed by substantial trading volume and a bullish MACD indicator. Presently, the stock's RSI level indicates overbought conditions. Technical analysis suggests that should the stock sustain its breakout momentum, it may potentially ascend further.

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) The Godrej family has agreed to split their conglomerate, with Adi and Nadir Godrej retaining control of listed firms, while cousins Jamshyd and Smita oversee unlisted businesses and a land bank, including prime Mumbai property. This division aims to streamline operations and focus on core strengths, with Pirojsha Godrej set to succeed Nadir in 2026. Regulatory approval is pending for the realignment.

2) Vedanta Group, led by Anil Agarwal, aims to invest $20 billion in Indian sectors like technology and electronics. Agarwal stresses the importance of selling the steel business at the right price and expresses commitment to its profitability. He also emphasizes philanthropic initiatives and hints at potential investments in the entertainment sector for cultural values.

3) Jindal Stainless announces a Rs 5,400 crore expansion plan, including a joint venture in Indonesia for a stainless steel melt shop, set to boost melting capacity by 40%. Investments in Odisha's downstream capacities and acquisition of Chromeni Steels aim to enhance operations and strengthen presence in value-added segments.