Technical Analysis of GLAXO & ITC

1. Stock name: Glaxosmithkline Pharmaceuticals Ltd.

Pattern: Head and shoulders pattern and retest

Time frame: Daily

Observation:

Since December 2023, the stock has surged significantly before stabilizing, forming a head and shoulder pattern on its daily chart. On March 06, 2024, it broke out from this pattern with substantial trading volume, subsequently moving downwards. Currently, it's undergoing a retest of the breakout, with its RSI still indicating low levels. Technical analysis suggests that if the retest is successful and downward momentum ensues, further decline may be expected.

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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: ITC Ltd.

Pattern: Double top pattern and retest

Time frame: Weekly

Observation:

Following the market's rebound post-COVID, the stock has ascended. Between May 2023 and February 2024, it consolidated, forming a double top pattern on its weekly chart. February 2024 witnessed a breakout from this pattern, supported by significant trading volume and a bearish signal on the MACD indicator. Post breakout the stock has moved in the downward direction. Currently, it's undergoing a retest of the breakout level, with its RSI indicating a low level. Technical analysis suggests that if the retest concludes successfully and gains a downward momentum it may move further downwards.

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) PFC has disbursed a record interim dividend of ₹2,033 crore to the Indian government for the fiscal year 2023-24. This dividend, distributed in three instalments, marks the highest-ever interim dividend payment by PFC. The payments, totalling ₹3,630 crore, were confirmed by PTI, with the final instalment handed over to RK Singh, Minister of Power and New & Renewable Energy.

2) Amit Kalyani, son of Bharat Forge's Chairman, is appointed Vice-Chairman and Joint MD. The decision was made during a board meeting on April 3, 2024. Kalyani's re-appointment as a whole-time director is for five years, starting from May 11, 2024.

3) Vi plans to raise ₹20,000 crore through equity, with a board meeting on April 6 to discuss the preferential share issue. Shareholders' approval is secured, aiming to complete the fundraising by June, with promoters contributing around ₹2,000 crore. The move attracts interest from UK institutional investors, while Vi's 5G rollout investments are crucial to compete with rivals like Airtel and Jio.