1. Stock name: Gujarat Fluorochemicals Ltd.

Pattern: Head and shoulders pattern and retest

Time frame: Weekly

Observation:

Since hitting COVID lows in March 2020, the stock has followed an upward trajectory, and it consolidated from October 2022. Notably, a bearish head and shoulders pattern emerged on the weekly chart. The second week of July 2023 displayed a breakout candle featuring above average trading volumes. Currently, the stock is in the process of retesting this breakout threshold. As per technical analysis, if the stock breaks the neckline it may lead to further 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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2. Stock name: CCL Products (I) Ltd.

Pattern: Flag and pole pattern

Time frame: Daily

Observation:

After hitting lows during the COVID-19 period, the stock experienced a strong recovery and maintained an upward trend until recently. Starting on July 14, 2023, however, there was a sharp decline followed by a short consolidation. This led to the creation of a flag and pole pattern on the daily charts, with a breakout candle forming on August 8, 2023. Nonetheless, the breakout candle's volume is relatively weak, requiring further monitoring. According to technical analysis, if the stock is able to hold the breakout level 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.

News for the day:

1) Hero MotoCorp's share price surges by almost 4% as it garners 25,597 bookings for the Harley-Davidson X440; initial booking phase concludes, with details about the upcoming booking window to be announced shortly.

2) The Competition Commission of India (CCI) greenlights the merger strategy of Tata Capital Financial Services Ltd (TCFSL) and Tata Cleantech Capital Ltd (TCCL) into Tata Capital Ltd (TCL), aiming to create an RBI-registered non-deposit-accepting core investment company (CIC) offering a diverse range of financial services.

3) Adani Group considers selling a stake in its FMCG joint venture, Adani Wilmar Ltd, as part of its strategy to concentrate on key business sectors and reduce balance sheet risk. Following an IPO in February 2022, both partners' stakes were brought down to 43.97% from the original 50% each.