1. Stock name: H.E.G. Ltd.

Pattern: Cup and handle pattern and retest

Time frame: Weekly

Observation:

Between January 2022 and December 2023, the stock exhibited a cup and handle pattern on its weekly chart, with a noticeable breakout occurring in December 2023 accompanied by above-average trading volume. Presently, the stock is undergoing a retest of the breakout level. The MACD indicator signalled favourably during the initial breakout, and the stock currently maintains a positive Relative Strength Index (RSI). Technical analysis suggests that if the stock successfully rebounds from the retest, it might experience 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: Computer Age Management Services Ltd.

Pattern: Double bottom pattern and retest

Time frame: Weekly

Observation:

Between February 2022 and November 2023, the stock displayed a double bottom pattern on its weekly chart, followed by a breakout in November 2023. Subsequently, the stock underwent a retest of the breakout level, which has now been completed, leading to a rebound. The Relative Strength Index (RSI) of the stock is currently at a favorable level. Based on technical analysis, the stock may continue the upward movement, if it sustains the current rebound momentum.

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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) Jindal Power, led by Naveen Jindal, outbids Adani Power with a ₹4,203-crore all-cash offer for the acquisition of Lanco Amarkantak Power. Following last week's bankruptcy court approval request, the National Company Law Tribunal (NCLT) directs Jindal Power to submit a plan, including a ₹100-crore bank guarantee, by Tuesday for consideration in the sale process. The NCLT is set to review Jindal Power's petition on Wednesday regarding its eligibility to participate in the sale process.

2) Lodha, the realty major behind Palava City, anticipates the annual revenue from the integrated smart township near Mumbai to surpass Rs 8,000 crore (approximately $1 billion) in the next few years. The Palava City project, initiated in 2010, spans nearly 5,000 acres and currently hosts almost 175,000 residents, with ongoing development in residential and commercial properties, offices, a life sciences hub, and warehousing and industrial spaces.

3) The Indian government has set up a committee, led by an Additional Secretary in the Ministry of Heavy Industries, to assess the auto industry's request to expand the Production Linked Incentive (PLI) scheme. The committee, comprising 11 members, will consider incorporating more automotive components in the PLI scheme due to technological advancements. The PLI Scheme for Automobile and Auto Components has been extended by one year, targeting determined sales over five consecutive financial years (2023-24 to 2027-28), with an investment of Rs 67,690 crore against the estimated Rs 42,500 crore.